Corn for July delivery added as much as 0.5% to US$3.3725 a bushel on the Chicago Board of Trade. The contract traded at US$3.37 a bushel at 9:47 a.m. Singapore time. Futures, which plunged yesterday to the lowest price since October 5, had declined in five of the past six sessions.

 

The gain is just small short covering, Tetsu Emori, commodity fund manager at Astmax Co. Ltd. said, referring to investors closing bets on price declines. He saw no other reason that will push prices higher because of the planting progress in the US, indicating increased supply of the grain.

 

Global corn output will be 804.1 million tonnes in the 2010-2011 season, F.O. Licht, a German research company, said in a report, raising its estimate from 795.16 million tonnes in May.

 

About 76% of the US crop, forecast to account for 41% of global output this year, was in good or excellent condition in the week ended June 6, according to a USDA report released yesterday. That is the highest rating for this time of year since 2007.

 

July-delivery wheat rose as much as 0.4% to US$4.34 a bushel after trading at US$4.31 a bushel yesterday, the lowest since April 2007. The contract last traded at US$4.335 a bushel.

 

The relative-strength index for wheat has been below 30 since June 2. A reading below 30 is viewed by some investors as a signal that the price may increase.

 

That compares with a USDA forecast of 1.458 billion bushels last month. The USDA will release its outlook on agricultural supply and demand on June 10 at 8:30 a.m. in Washington.