Corn holds near 1-month high, set to finish week up 2%

06/10/2021 | 11:18pm

* Corn draws support from USDA forecast

* Wheat edges higher

* Soybeans under pressure from USDA estimates

CANBERRA, June 11 (Reuters) - U.S. corn futures held steady on Friday and were set for their second straight weekly gain after government estimates pegged supplies below market expectations and weather models forecast more dry weather in a key producing region.

Soybeans firmed as the oilseed was on course to record a weekly gain of more than 2%, while wheat also edged higher.

The most active corn futures on the Chicago Board Of Trade were up 0.3% to $7.00-3/4 a bushel by 0057 GMT. They gained 1.2% in the previous session when prices hit a May 12 high of $7.17-1/2 a bushel.

Corn is up more than 2% for the week, and analysts said weather models are escalating concerns about U.S. supplies, already tipped by the U.S. Department of Agriculture (USDA) to hit an eight-year low.

The USDA on Thursday attributed that estimate to rising demand from the ethanol and export sectors.

"The north-west of the U.S. Midwest is now headed into a drier period, and the dry region is likely to expand south and east over the next week or so," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Tempering support slightly, late-planted Argentine corn is enjoying better-than-expected yields, prompting the Buenos Aires Grains Exchange to increase its 2020/21 harvest estimate to 48 million tonnes from a prior 46 million tonnes.

The most active wheat futures were up 0.2% at $6.85-1/4 a bushel after closing up 0.2% in the previous session.

Wheat is down nearly 0.5% for the week after finishing up 3.7% in the previous week.

The most active soybean futures were down 0.2% at $15.47 a bushel after closing down 1.2% in the previous session.

Soybeans are down more than 2% for the week, the first weekly loss in three weeks.

Analysts said soybeans remained under pressure after the USDA said stockpiles will be bigger than expected as high prices have cut into demand for soyoil and soymeal. (Reporting by Colin Packham; Editing by Ramakrishnan M.)

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