CANBERRA: Chicago corn and soybean futures on Tuesday dipped from multi-month highs reached after the U.S. government last week said that U.S. farmers' 2024 harvests were smaller than expected.

Wheat futures rose slightly amid expectations of a slowdown in shipments from top exporter Russia.

 

FUNDAMENTALS

* The most active corn contract on the Chicago Board of Trade (CBOT) eased 0.3% to $4.75 a bushel by 0124 GMT after reaching $4.77, its highest since December 2023, on Monday.

* CBOT soybeans fell 0.3% to $10.49-1/2 a bushel after reaching $10.54, the highest since October 2024, on Monday.

* Wheat rose 0.2% to $5.46 a bushel, but remained close to a four-year low of $5.14 touched last year.

* The U.S. Department of Agriculture (USDA) on Friday jolted the market by slashing its estimates for U.S. 2024 corn and soybean production and end-of-season stocks, pointing to a tighter supply outlook than expected.

* The data triggered a flurry of buying by commodity funds, adding to their bullish position in corn and covering short positions in soybeans, traders said.

* Funds are now their most bullish on corn since 2022, but are bearish on soybeans due to plentiful supply.

* Overseas demand for U.S. corn has been strong, with the USDA saying that 1,441,006 metric tons were inspected for export in the latest week, well above trade expectations.

* Upcoming South American harvests loom over corn and soy markets. Soybean prices will likely be capped by forecasts that Brazil will produce over 170 million tons, analysts said.

* However, Brazil's soybean harvest got off to a slow start and Argentina's corn and soybean crops face a heat wave over the next few days, which might affect yields.

* In wheat, export prices in top shipper Russia remained almost unchanged since the beginning of the year, with trading muted by the long New Year holidays, weak demand and analysts expecting shipments to fall in January.

 

MARKETS NEWS

* Stock indexes mostly dipped on Monday, while U.S. Treasury 10-year yields touched 14-month highs as a resilient U.S. economy and persistent inflation prompted investors to weigh the possibility that the Federal Reserve may pause its easing cycle. (Reporting by Peter Hobson; Editing by Sumana Nandy)