Corn hits one-week high as USDA cuts yield more than expected

Corn hits one-week high as USDA cuts yield more than expected

Chicago hog futures dipped to a three-month low on Tuesday while cattle prices eased after the U.S. Department of Agriculture said historically rainy weather would lead to a smaller corn crop than previously thought.

Traders are anxiously awaiting Monday afternoon's latest crop progress reports, followed by Tuesday's monthly USDA supply and demand report that will update United States and world grain balance sheets. Analysts had been expected a milder decline to 172.4 bushels.

"U.S. farmers might just be able to finish planting if the weather holds up", said one Singapore-based feed grains trader.

USDA left its soybean projections unchanged, at 4.150 billion bushels for harvest and 49.5 bushels per acre for yield.

CBOT wheat gained 2% to $5.17-3/4 a bushel and soybeans rose 0.4% to $8.61-1/2 a bushel.

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Chicago Board of Trade corn futures turned higher after the report was released.

Traders will also closely examine Monday morning's weekly USDA export inspections report.

The agency kept its production and yield estimates for soybeans unchanged from last month.

It is unclear at this point how many acres will move from corn to another crop like soybeans or if feed crop producers will consider acres to have faced prevented planting and seek insurance compensation, he said. The agency rated 59% of the crop as good-to-excellent, ahead of market expectations. The crop is typically planted after corn.

Traders, however, said it was hard to know the crop's true condition since only 62% has emerged, well below the average of 93%.