GRAINS-U.S. corn falls for 4th day on key USDA data

Tue Dec 11, 2012 11:20am IST

* USDA monthly supply/demand report due at 1330 GMT
    * South Korean feedmaker avoids buying U.S. corn
    * Poor weather in United States to underpin wheat

    By Mayank Bhardwaj
    NEW DELHI, Dec 11 (Reuters) - Chicago corn futures fell for
a fourth day on Tuesday on analysts' expectations that the
United States Department of Agriculture will project higher
stocks because of poor export demand.
    The USDA'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. 
    "Corn has fallen ahead of the USDA data and fundamentals
suggest that the trade is expected to remain in the lower range
in the near future," said Jonathan Barratt, chief executive of
BarrattBulletin, Sydney-based commodity research firm.
    Underscoring the concerns, 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.
    Also, reports that a South Korean feedmaker issued an
international tender for corn and feed wheat but excluded corn
from the United States, the world's biggest supplier, put some
downward pressure on the gain.
    Some traders said the poor quality of U.S. corn could be the
reason behind the rejection rather than price.
    Severe drought in the heart of the U.S. Corn Belt this
summer contributed to the spread of aflatoxin, the toxic
byproduct of a mold that tends to spread in corn in drought
years.
    Chicago Board Of Trade March corn fell 0.2 percent to
$7.28-1/4 a bushel. Corn hit a three-week low in the previous
session. 
    CBOT March wheat lost 0.2 percent to $8.46-1/2 a
bushel. On Monday, the contract fell below chart support at
$8.51-1/2, a level that had held for four straight sessions last
week. The contract dipped to an intra-day low of $8.46-3/4, its
lowest level in three weeks. 
    Wheat fell ahead of the USDA data but poor weather
conditions in the United States would underpin the contract,
Barratt said.
    The USDA is expected to slightly raise its forecast of
2012/13 ending wheat inventory.
    The news that the U.S. won only a small share of purchases
by Saudi Arabia and Iraq also added to bearish sentiment.
 
    CBOT January soybeans fell marginally to $14.74-1/2 a
bushel.
    Favourable crop weather in Brazil has boosted prospects for
a record-large crop in that country, with harvest expected in
early 2013.
 Grains prices at 0500 GMT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 Contract   Last    Change Pct chg Two-day chg MA 30   RSI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 CBOT wheat 846.50  -2.25  -0.27%  -1.68%     872.83   32
 CBOT corn  728.25  -1.75  -0.24%  -1.22%     745.19   28
 CBOT soy  1474.25  -0.50  -0.03%  +0.14%    1460.10   57                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 CBOT rice  $15.48  $0.03  +0.16%  +1.38%     $15.11   64                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 WTI crude  $85.65  $0.09  +0.11%  -0.33%     $86.74   37                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Currencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 Euro/dlr   $1.295  $0.006 +0.48%  +0.21%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 USD/AUD    1.048   -0.001 -0.06%  -0.10%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Most active contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 Wheat,corn and soy US cents/bushel.Rice: USD per hundredweight                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 RSI 14, exponential                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
 (Editing by Richard Pullin)
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