October 20, 2015 / 12:54 AM / 2 years ago

GRAINS-Corn drops to 5-week low on harvest pace, wheat extends losses

SINGAPORE, Oct 20 (Reuters) - Chicago corn lost more ground
on Tuesday, dropping to its lowest since Sept. 11 following a
government report showing the U.S. harvest is progressing at an
above average pace.
    Wheat slid for a fifth consecutive session to trade near
Monday's one-month low on forecasts of beneficial rains in parts
of U.S. and Russian grain producing regions.
    
    FUNDAMENTALS
    * Farmers had finished harvested 59 percent of the corn crop
as of Oct. 18, the U.S. Department of Agriculture said after the
market closed on Monday. This compares with 42 percent of the
crop harvested a week ago and is above five-year average pace of
54 percent.
    * U.S. soybean harvest was 77 percent complete, up from 62
percent a week ago and higher than the five-year average of 68
percent, the USDA said in its weekly crop progress report.
    * The market had expected the report to show corn harvest
was 59 percent complete and soybean harvest at 79 percent over.
    * Showers this week were likely to benefit parched wheat
fields in Russia and the southern U.S. Plains, while
precipitation next week in northern Brazil should aid recently
planted soybeans, the Commodity Weather Group said in a note.
    * Still, Australia's 2015/16 wheat crop will be lower than
previously expected at around 24 million tonnes, Jammie Penm,
chief commodity analyst for the Australian Bureau of
Agricultural and Resource Economics and Sciences, said on
Monday. 
    * Forecasts for the upcoming wheat crop in Australia, one of
the world's biggest exporters of the cereal, have been falling
as dryness linked to an El Nino weather pattern and above-normal
temperatures hurt the crop in its crucial phase of development.
    * Soybeans found little support from a separate USDA
announcement that said 2.36 million tonnes of the beans were
inspected for export last week, above analyst expectations that
ranged from 1.2 million to 1.8 million tonnes. Wheat and corn
export inspections were both below analyst estimates.
    * The CME Group Inc CME.O plans to raise transaction fees on
a host of products starting Jan. 1, 2016, pending regulatory
approval, the exchange said on Monday. 
    
    MARKET NEWS
    * Asian equities dipped early on Tuesday after commodity
prices slid in wake of China growth woes and dampened risk
sentiment, while the euro hovered near a 10-day low ahead of a
European Central Bank meeting that could open the door for more
monetary easing.
    
    DATA AHEAD (GMT) 
0600 Germany Producer prices Sep 
0800 Euro zone Current account Aug 
1230 U.S. Housing starts Sep 
1230 U.S. Building permits Sep
    
  Grains prices at  0035 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     485.00    -0.75  -0.15%    -3.48%     500.47   32
  CBOT corn      372.25    -0.75  -0.20%    -0.87%     383.87   33
  CBOT soy       892.75     1.75  +0.20%    -1.38%     883.73   48
  CBOT rice      $12.16    $0.05  +0.45%    -0.98%     $12.88   27
  WTI crude      $46.17    $0.28  +0.61%    -2.31%     $46.08   45
  Currencies                                                
  Euro/dlr       $1.133  -$0.002  -0.15%    -0.47%
  USD/AUD         0.727    0.001  +0.12%    -0.82%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                
                                                                                
 
 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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