Chicago grains drift ahead of USDA data

Chicago corn, wheat and soybean futures were little changed on Tuesday, as traders adjusted positions ahead of U.S. planting and stocks estimates later in the day.

Caution before the U.S. Department of Agriculture's grain planting and stocks reports, due at 1600 GMT, encouraged a pause in the selling that took corn futures to contract lows on Monday. Corn, wheat and soybeans are on course for monthly and quarterly declines.

A favourable start to the U.S. Midwest growing season, strength in the dollar and falling oil prices following de-escalation in the Middle East war have weighed on corn and soybean prices.

"Today's closely watched USDA acreage and quarterly grain stocks reports may determine whether this correction has largely run its course, or whether markets still need to adjust to a more comfortable supply outlook," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

Analysts, on average, expect the agency to lower its corn acreage estimate and raise its soybean planting estimate, though some see farmers making only marginal cuts to corn plantings despite higher fertiliser costs linked to the Iran war.

Traders are monitoring hot weather across much of the U.S. Midwest this week, but showers and easing heat forecast in the coming days are expected to limit potential crop stress.

September corn (CU26) on the Chicago Board of Trade was 0.1% down at $4.10 a bushel at 1113 GMT, lingering near Monday's contract low of $4.07.

CBOT soybeans edged down 0.2% to $11.37 a bushel, while CBOT wheat CBOT:ZW1! was 0.1% lower at $5.79 a bushel, after hitting a two-week low.

Concern over a drought-diminished U.S. wheat crop has been tempered by a brisk harvest pace and expectations for bumper production in the Black Sea export region that includes Russia.