GRAINS-Corn rebounds on U.S. weather concerns, soy hits 10-year high - Successful Farming

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* Corn rises 1% as dry weather in parts of U.S. Midwest supports

* Global edible oil prices jump, U.S. soyoil hits 10-year high (Adds graphic on world edible oil markets, updates prices)

By Naveen Thukral

SINGAPORE, June 3 (Reuters) - Chicago corn futures gained almost 1% on Thursday, recouping some of the previous session's losses, with concerns over dry U.S. weather and strong demand underpinning prices.

World edible oil prices jumped on supply concerns with soybean oil hitting its highest in a decade, while soybeans climbed for a third consecutive session.

"The situation in South America has been a concern effect, and now U.S. Midwest is turning dry. It might be a bit early to lower production estimates for U.S. corn crop," Phin Ziebell, agribusiness economist at National Australia Bank, said.

"The edible oil side is more bullish with higher use in biofuels. Energy prices are also climbing."

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.9% at $6.81-1/2 a bushel, as of 0522 GMT, after dropping 2% on Wednesday.

Soybean oil futures added 1.7% to hit their highest level since 2011 and soybeans rose 1.4% to $15.84 a bushel. Wheat gained 0.5% at $6.91 a bushel.

Hot and dry weather in parts of the U.S. Midwest is causing concerns over yields of newly planted corn and soybean crops, following a severe drought in Brazil.

Brazil's worst water crisis in almost a century will impact river navigation and make transportation of goods more expensive in the world's largest exporter of commodities ranging from soybeans to coffee and sugar.

Malaysian palm oil futures jumped 3% while China's Dalian palm oil prices gained more than 5%.

Russia's new formula-based grain export taxes will remain in place as long as there is increased global demand for food, Deputy Prime Minister Victoria Abramchenko told Reuters.

Commodity funds were net sellers of CBOT corn, wheat and soymeal futures contracts on Wednesday and net buyers of soybeans and soyoil, traders said.

(Reporting by Naveen Thukral; Editing by Ramakrishnan M. and Sherry Jacob-Phillips)

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June 03, 2021 at 12:34PM
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GRAINS-Corn rebounds on U.S. weather concerns, soy hits 10-year high - Successful Farming

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