GRAINS-U.S. corn slips to 3-week low on higher inventory

Mon Dec 10, 2012 11:01am IST

* U.S. corn inventory expected to rise 2.5 pct
    * Poor weather, export demand help arrest fall in wheat

    By Mayank Bhardwaj
    NEW DELHI, Dec 10 (Reuters) - Chicago corn futures eased to
a three-week low on Monday, extending losses for the third
straight session, crimped by sluggish exports from top supplier
the United States and expectations of higher inventory forecast
by the USDA.
    Lower export demand would help U.S. corn stocks jump by 2.5
percent to 663 million bushels, a Reuters poll showed, up from
the USDA's forecast of 647 million bushels.
    But supplies would still be the tightest since the end of
the 1995/96 crop year, due to the worst drought in more than 50
years limiting crop production across the U.S. Midwest.
    Global corn stocks are expected at 118.006 million tonnes,
up from the 117.990 million tonnes the USDA forecast in
November.
    The United States Department of Agriculture will release its
monthly world supply and demand estimates on Tuesday.
[ID:ID:nL1E8N67J5]
    "Weak exports from the United States is the single most
important reason behind the fall in corn, but there has been
some profit-taking as well, ahead of the USDA data," said Luke
Mathews, a commodities strategist at Commonwealth Bank of
Australia in Sydney.
    Chicago Board Of Trade March corn fell 0.6 percent to
$7.32-1/2 a bushel. Corn slipped 1.9 percent in the previous
session, its biggest daily drop in almost a month.
    CBOT March wheat lost 0.4 percent to $8.57-1/2 a
bushel.
    "The fall in wheat is not as steep as in corn and wheat is
going to hold up due to poor crop conditions in the United
States and some rise in export demand," Mathews said.
    Twenty-six percent of the new U.S. winter wheat crop was
rated poor to very poor in late November by the USDA.
    Historic drought, coupled with record warm weather and high
winds sweeping across the U.S. Plains, have left the new crop in
the worst condition in decades. With no significant improvement
soon, many farmers could give up on their wheat acres.
 
    On Friday, European wheat prices firmed, supported by hefty
export demand. 
    CBOT January soybeans dropped 0.2 percent, to $14.69 a
 bushel.
  
 Grains prices at  0520 GMT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 Contract    Last    Change Pct chg Two-day chg MA 30   RSI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 CBOT wheat  857.50  -3.50  -0.41%  -0.52%     873.50   41
 CBOT corn   732.50  -4.75  -0.64%  -2.53%     745.57   30
 CBOT soy    1468.00 -4.25  -0.29%  -1.56%     1461.69  55                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 CBOT rice   $15.25  -$0.02 -0.10%  -0.39%     $15.09   54                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 WTI crude   $86.20   $0.27 +0.31%  +0.31%     $86.87   40                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 Currencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 Euro/dlr    $1.290   $0.001  +0.06%    -0.21%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 USD/AUD     1.047   -0.002  -0.14%    -0.18%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 Most active contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 Wheat,corn and soy US cents/bushel.Rice: USD per hundredweight                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 RSI 14, exponential
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