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GRAINS-Corn hits 5-week low on harvest pace, wheat extends losses
October 20, 2015 / 2:10 AM / 2 years ago

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

* Corn falls for 2nd day to lowest since September 11
    * Above average pace of harvest adds pressure on corn
    * Wheat weighed down by f'cast of rains in U.S., Russia

 (Adds details, analysts' comments)
    By Naveen Thukral
    SINGAPORE, Oct 20 (Reuters) - Chicago corn dropped to its
lowest in more than five weeks on Tuesday following a government
report which showed the U.S. harvest is progressing at an above
average pace.
    Wheat fell 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.
    Chicago Board of Trade December corn was down 0.1
percent at $3.72-1/4 a bushel, its lowest since Sept. 11 while
December wheat gave up 0.2 percent to trade at $4.85 a
bushel. November soybeans gained 0.4 percent to $8.94-1/4
a bushel.
    Farmers finished harvesting 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 the five-year average
pace of 54 percent.
    The 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 the soybean harvest was 79 percent
complete.
    "Global supplies have been very healthy, the market is well
supplied across beans, corn and wheat," said Phin Ziebell,
agribusiness economist, National Australia Bank.
    "There were some worries about wheat in the U.S. and Black
Sea region but now we have forecasts of rains. It remains to be
seen if those rains will have a material impact on crops."
    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 plans to raise transaction fees on
a host of products starting Jan. 1, 2016, pending regulatory
approval, the exchange said on Monday. 
    
  Grains prices at  0129 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      372.50    -0.50  -0.13%    -0.80%     383.88   33
  CBOT soy       894.25     3.25  +0.36%    -1.22%     883.78   50
  CBOT rice      $12.16    $0.05  +0.45%    -0.98%     $12.88   27
  WTI crude      $46.08    $0.19  +0.41%    -2.50%     $46.08   44
  Currencies                                                
  Euro/dlr       $1.134  -$0.001  -0.09%    -0.40%
  USD/AUD         0.726    0.000  +0.03%    -0.91%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                            
                                                                                            
 
    
    

 (Reporting by Naveen Thukral; Editing by Edwina Gibbs)

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