Soy rises from three-week low, corn firms ahead of US report

Chicago soybeans rose today after hitting a three-week low, while corn gained following two straight days of losses in positioning ahead of key US reports which will shed light on damage caused by a historic Midwest drought.

Funds have been liquidating bullish bets in the markets heading into US Department of Agriculture supply-demand and crop production reports due at 1230 GMT later today.

Some traders expect the USDA to announce further cuts in soybean and corn estimates, while others suspect the markets have already factored in the worst drought in 56 years.

Chicago Board of Trade new-crop November soy rose 0.7 percent to $17.13-3/4 a bushel by 0233 GMT after touching a low of $16.96-3/4 a bushel, lowest since Aug. 21.

December wheat added 0.4 percent to $8.87-1/2 a bushel and December corn rose 0.4 percent to $7.81 a bushel.

The advancing corn and soybean harvests have added pressure to prices as they brought new supplies onto the markets.

The USDA's first update on this year's soybean harvest on Monday showed the crop was 4 percent harvested, which topped the five-year average of 2 percent and expectations for 3 percent harvested.

The USDA also said the condition of soy plants had improved, reinforcing market sentiment that parts of the Midwest benefited from rain last month.

The corn harvest was 15 percent complete, above the five-year average of 5 percent. In the wheat market, there was support from tightening supplies in the Black Sea region and dryness curbing yields in Australia.