* Wheat dips after rising almost 3 percent in two days
* Corn market likely to be weighed down by U.S. harvest
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Sept 6 Chicago wheat fell on Tuesday
while corn dipped as grain markets opened after a long weekend,
with ample wheat supplies and an upcoming harvest of a record
high U.S. corn crop denting prices.
Soybeans edged up, adding to Friday's near one percent gain.
Chicago Board of Trade most-active wheat contract fell
0.4 percent to $3.97-3/4 a bushel by 0253 GMT, having gained
almost 3 percent over the past two sessions. On Friday, wheat
prices hit their highest since Aug. 29 at $4.01-1/2 a bushel.
Corn eased 0.2 percent to $3.28 a bushel, while
soybeans rose 0.1 percent to $9.53-1/2 a bushel.
"Corn and wheat have started lower, we expect upside in corn
to be capped at $3.30 a bushel as the market will come under
U.S. harvest pressure," said Kaname Gokon at brokerage Okato
Shoji in Tokyo.
U.S. corn and soybean crops are expected to get bigger in
ideal weather conditions.
Commodity brokerage INTL FCStone on Friday said it raised
its forecast of the average U.S. 2016 corn yield to 175.6
bushels per acre, which would be a record high if realized, from
175.0 in its previous monthly report.
The firm raised its forecast of the U.S. 2016 soybean yield
to a record 50.1 bpa, up from its August figure of 48.8.
For wheat, there was additional pressure following a move by
Egypt, the world's top buyer, for zero tolerance on ergot fungus
in foreign shipments.
Egypt's health ministry will no longer accept any trace
levels of ergot on inspection of imported wheat shipments, a
document obtained by Reuters showed on Monday.
Egypt's state grain buyer GASC cancelled its wheat tender
last week after receiving just one offer as Cairo reinstated its
zero-tolerance ergot policy - a move that baffled traders as the
implementation of the policy late last year had led to
disruptions to its wheat buying programme.
In China, the country's top grain province is offering
farmers subsidies of 150 yuan ($22.46) per mu (0.067 hectares)
to rotate corn with soybeans, as it seeks to cut corn output
amid huge oversupply.
Large speculators increased their net short position in CBOT
corn futures in the week to Aug. 30, regulatory data showed. The
Commodity Futures Trading Commission's weekly commitments of
traders report also showed that noncommercial traders, a
category that includes hedge funds, increased their net short
position in wheat and cut their net long position in soybeans.
Grains prices at 0253 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 397.75 -1.50 -0.38% +0.76% 425.80 31
CBOT corn 328.00 -0.50 -0.15% +1.31% 333.42 46
CBOT soy 953.50 1.00 +0.10% +1.03% 979.98 34
CBOT rice 9.68 -$0.01 -0.10% +2.76% $9.82 43
WTI crude 45.30 $0.86 +1.94% +4.96% $44.36 47
Euro/dlr $1.116 $0.001 +0.10% +0.02%
USD/AUD 0.7625 0.005 +0.62% +0.73%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Himani Sarkar)