GRAINS-U.S. corn falls after weekly gains top 12 pct

Wed Jun 27, 2012 6:30am IST

SYDNEY, June 27 (Reuters) - U.S. new-crop corn on Wednesday
fell from an 8-month high hit after the biggest two-day rally in
more than a year, as traders locked in profits ahead of
forecasts from the U.S. Department of Agriculture on Friday. 
    Chicago Board of Trade December corn dropped 0.76
percent after climbing 5.05 percent in the previous session as
unrelenting heat in the U.S. Midwest threatened deepening damage
to a once-record crop. That climb had taken gains for the week
to 12.5 percent, the most for the December contact since 2009. 
    Spot corn fell 0.31 percent on Wednesday.
    September wheat declined 0.69 percent, losing much of
its 0.81 percent gain from the previous session, while July corn
 lost 0.69 percent. 
    New-crop November soybeans firmed 0.14 percent after
sliding 0.86 percent on Tuesday.
    
    FUNDAMENTALS
    * USDA may cut its forecast for year-ending stocks to the
tightest in 16 years.
    * USDA's weekly report late Monday showed the condition of
corn and soybean crops was the worst for this time since 1988,
when one of the most damaging droughts in U.S. history decimated
crop yields.
    * Temperatures in the 90s to 100s degrees Fahrenheit (32 to
38 degrees Celsius) are likely Wednesday and Thursday across the
U.S. Midwest, adding further pressure to corn. 
    * Midday weather forecasts for light showers this weekend in
the northern U.S. Corn Belt helped temper soybeans, which eased
from an earlier contract high, but did little to alleviate fears
of ultra-low late-summer corn supplies.
    * USDA's weekly crop ratings rated U.S. corn 56 percent good
to excellent as of Sunday, down 7 percentage points from a week
earlier and well below a 61 percent average estimate in a
Reuters poll. Soybeans were 53 percent good to excellent, down
from 56 percent a week earlier. Corn ratings
have fallen for three straight weeks, cutting expectations for a
bumper crop this autumn, which the market was relying on to
replenish tight U.S. stocks.
    
    MARKET NEWS
    * The euro fell to it lowest against the dollar in more than
two weeks on Tuesday as Spanish bond yields rose and hopes faded
that a European summit would make progress in resolving the
region's debt crisis.  
    * Brent oil futures jumped 2 percent to top $93 a barrel on
Tuesday, widening its premium against U.S. crude as a growing
strike by oil workers in Norway tightened North Sea supplies.
  
    * Major U.S. stock indexes bounced back on Tuesday, but
trading was light with the outlook clouded by doubts over the
summit in Europe.  
    
    DATA/EVENTS (GMT) 
0600 Germany Import prices 
1230 U.S.    Durable goods orders                    
1230 U.S.    Chicago Fed Midwest Manufacturing Index 
1400 U.S.    Pending home sales 
1430 U.S.    EIA petroleum status report             
    
  Grains prices at  0024 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     724.00    -5.00  -0.69%   +10.20%     616.79   82
  CBOT corn      619.25    -4.75  -0.76%    -5.96%     609.23   68
  CBOT soy      1415.25     2.00  +0.14%   +15.30%    1161.49   66
  CBOT rice      $15.09    $0.06  +0.40%    +3.04%     $14.45   69
  WTI crude      $79.33   -$0.03  -0.04%   -22.95%     $98.17   32
  Currencies                                                
  Euro/dlr       $1.249  -$0.046  -3.53%    -4.32%
  USD/AUD         1.005   -0.032  -3.08%    -3.11%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage