Asian grain prices are expected to be higher in the next few days as investors take leads from late plantings in the US, one of the world's largest exporters, trade participants said.
The most active wheat futures for July delivery on CBOT were trading yesterday US1.75c higher at $US7.06 a bushel. July corn is up US2.75c at $US6.39 a bushel.
Most trading executives and analysts put immediate resistance for wheat at $US7.20 and at $US6.60 for corn.
The US Department of Agriculture forecast a strong rebound in the country's corn output in a monthly report released last week. However, analysts point out that a similar forecast was made last year but the production was badly hit by drought.
"It all depends on the weather, which will play a crucial role in determining the actual production," said Hiroyuki Kikukawa, general manager for research at Nihon Unicom in Japan.
US corn plantings are at their slowest pace in almost 30 years. Asian buyers are actively buying grains because of concerns at rising prices, as dry weather and a winter freeze have damaged the US winter wheat crop, and the US spring corn and wheat plantings have been delayed due to rain.
South Korea, one of the world's largest importers of feed grains, purchased close to 400,000 tonnes of wheat and corn within three days last week, according to industry estimates.
"US corn plantings will gather pace in the next few weeks but late sowing will also translate into delay in harvest, which increases the risk of frost on the crop," a Singapore-based executive with a global commodity trader said.
US corn inventories at the end of this marketing year are forecast to fall 23 per cent to about 19 million tonnes.
A delayed harvest also means delayed replenishment of stocks. The period when the crop has been sold and the next harvest is yet to begin will be crucial when prices can get support, particularly because there is congestion at several South American ports.
