Focus will now turn to the USDA's annual plantings report, to be released later on Wednesday (June 30), which is widely expected to show US farmers have seeded record corn acres.

 

CBOT corn futures for July delivery gained 0.15% to US$3.25-½ per bushel, after testing the US$3.25 support level on Tuesday (June 29) as crop weather favoured production prospects in US.

 

Soy futures for July delivery gained 0.26% to US$9.49-¾ per bushel, after falling through a key support level of US$9.50 earlier. Its rebound is helped by tight US cash markets and still solid demand from China.

 

Wheat futures for July delivery was unchanged at US$4.42 per bushel, remaining at a 2-½ week low as the US winter wheat harvest now underway adds to ample global stocks.

 

US corn crops are benefiting from drier weather and moderate temperatures, suggesting a record harvest in 2010 which is likely to keep a lid on prices.

 

The USDA will release plantings and stocks reports for wheat, corn and soy later on Wednesday (June 30) that are expected to show raised estimates of the area planted with corn and soy this year.

 

US farmers have been responding to strong demand for soy and corn, largely due to China's import appetite. China re-entered the US corn market for the first time in nearly four years in April and has also been a steady buyer of US soy.

 

Investors fled the US stock market on Tuesday (June 29) and the S&P 500 tumbled to its lowest level in eight months in a sell-off triggered by a wave of increasing alarm over the global economic outlook. The Dow Jones industrial average lost 268.22 points, or 2.65%, to 9,870.30 points.