GRAINS-Corn firms, but still near three-week low

Tue Dec 11, 2012 6:23am IST

SYDNEY, Dec 11 (Reuters) - U.S. corn rose on Tuesday,
snapping a three-day slide, but still held near a three-week low
as traders readied for a U.S. Department of Agriculture report,
widely anticipated to show an increase in ending stocks due to
weak demand.
    
    FUNDAMENTALS  
    * Chicago Board Of Trade January soybeans fell 0.12
percent to $14.73 a bushel, having firmed 0.17 percent on
Monday.  
    * March corn rose 0.17 percent to $7.31-1/4 a bushel,
having slid 0.98 percent in the previous session when the grain
hit a three-week low.
    * March wheat fell 0.06 percent to $8.48-1/4 a bushel,
having closed down 1.42 percent on Monday, its biggest daily
slide since November 30, when it hit a three-week low.
    * U.S. Department of Agriculture's monthly supply/demand
reports are due at 1330 GMT. Analysts expect USDA to raise its
forecast of U.S. corn ending stocks for 2012/13 due to weak
export demand. 
    * USDA reported export inspections of U.S. corn in the
latest week at 7.861 million bushels, below a range of trade
estimates for 9 million to 15 million.
    * Firm cash markets for U.S. soybeans amid historically
strong crush margins and robust export demand have helped drive
a three-week rally in nearby soybean futures. 
    * Favorable crop weather in Brazil has boosted prospects for
a record-large soybean crop in that country, with harvest
expected in early 2013.
    * USDA confirmed that private exporters sold 115,000 tonnes
of U.S. wheat to Egypt, including 60,000 tonnes of soft red
winter wheat and 55,000 tonnes of soft white wheat. However,
traders said the market had already factored in the news.
 
    * Argentina will allow only 4.5 million tonnes of wheat
exports this campaign, against 6 million previously planned, in
response to a rain-plagued harvest, a source said.
 
    * Saudi Arabia bought 295,000 tonnes of hard wheat from the
European Union, Australia and the United States, while Iraq
bought 350,000 tonnes of wheat from Australia and Romania.
             
    MARKET NEWS  
    * The euro extended its recovery from a two-week low on
Tuesday as nerves calmed over Italy's latest political turmoil
and the prospects of more stimulus from the Federal Reserve
pinned down the dollar.  
    * Brent oil prices rose slightly on Monday after Chinese
data showed oil imports increased last month, a sign of robust
demand for commodities in the world's No. 2 oil consuming
country.  
    * U.S. stocks edged higher on Monday as technology shares
bounced back after recent weakness and McDonald's posted strong
monthly sales.  
    
    DATA/EVENTS (GMT) 
1000 Germany ZEW survey                           Dec 
1245 U.S.    ICSC weekly U.S. chain store sales       
1330 U.S.    International trade Oct 
1355 U.S.    Redbook weekly retail sales 
1500 U.S.    ISM semi-annual forecasts 
1500 U.S.    Wholesale inventories                Oct 
1500 U.S.    IBD/TIPP Consumer confidence index   Dec 
             Federal Open Market Committee starts first day of a
 
             two-day interest rate policy meeting 

    
  Grains prices at  0020 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     848.25    -0.50  -0.06%    -1.48%     872.88   34
  CBOT corn      731.00     1.00  +0.14%    -0.85%     745.44   28
  CBOT soy      1473.00    -1.75  -0.12%    +0.05%    1460.06   59
  CBOT rice      $15.46    $0.01  +0.06%    +1.28%     $15.11   64
  WTI crude      $85.69    $0.13  +0.15%    -0.28%     $86.74   38
  Currencies                                                
  Euro/dlr       $1.294   $0.000  +0.03%    +0.15%
  USD/AUD         1.048    0.000  -0.02%    -0.03%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Richard Pullin)
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