GRAINS-U.S. corn drops, wheat gains ahead of USDA data

Tue Mar 26, 2013 10:53am IST

* Analysts see thin trade ahead of Thursday's USDA data
    * Corn stuck between lower stocks, higher planting estimates
    * U.S. wheat areas get less rain than anticipated

    By Mayank Bhardwaj
    NEW DELHI, March 26 (Reuters) - Chicago corn futures fell on
Tuesday after settling up 1 percent in the previous session, as
traders squared positions ahead of key data from the United
States Department of Agriculture expected later in the week.
    The USDA data, due on Thursday, is widely expected to reveal
the tightest stockpile of corn in 15 years but analysts also
estimate this year's corn planting to be the highest in 77
years, easing supply concerns.
    May corn shed 0.27 percent to $7.31-1/4 a bushel by
0505 GMT on the Chicago Board of Trade, having gained 1 percent
in the last session. May wheat gained 0.1 percent to $7.28
a bushel, after closing down 2-1/2 cents in the previous
session.
    May soybeans slipped 0.1 percent to $14.35-3/4 a
bushel. They had settled at $14.37-1/4 per bushel on Monday,
down 3-1/4 cents per bushel.
    "The fact that the USDA is expected to come out with the
numbers reflecting tighter supply positions is supportive for
corn," said Luke Mathews, commodities strategist at the
Commonwealth Bank of Australia.
    "But corn will remain torn between expectations of tighter
supply numbers by the USDA and estimates of higher area under
planting," Mathews said.
    Analysts on average expect the USDA to peg quarterly corn
stocks as the smallest in 15 years. Investment funds were said
to have bought 7,000 corn contracts and sold 1,000 contracts
each of wheat and soybeans.
    Wheat rose, reflecting buoyant export demand, Mathews said.
    "Export demand was strong in the past week but concerns
remain about the impact of poor weather conditions in the United
States and there's nothing to be excited about on wheat," he
said.
    Analysts expect trading volumes to remain thin until
Thursday's report.
    Wheat-growing areas of the U.S. Plains have received light
rain but showers have been less than anticipated, while bitter
cold there may have damaged wheat plants emerging from winter
dormancy.
    For soybean, analysts expect the USDA will announce
quarterly stocks to be the smallest in nine years. Investment
funds were said to have sold 1,000 contracts of soybeans.
  Grains prices at  0505 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     728.00     0.75  +0.10%    -0.24%     719.68   61
  CBOT corn      731.25    -2.00  -0.27%    +0.69%     702.52   57
  CBOT soy      1435.75    -1.50  -0.10%    -0.33%    1441.23   45
  CBOT rice      $14.98    $0.05  +0.37%    +0.54%     $15.42   55
  WTI crude      $94.84    $0.03  +0.03%    +1.21%     $93.31   66
  Currencies                                                
  Euro/dlr       $1.286   $0.001  +0.09%    -0.94%
  USD/AUD         1.046    0.000  -0.04%    +0.17%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Editing by Clarence Fernandez)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

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