* Chicago corn eases for the first time in six sessions
* Market sees USDA trimming corn yields in Monday's report
* Corn, soybeans, wheat seen posting gains for the week
(Adds comment, detail)
By Naveen Thukral
SINGAPORE, Sept 9 Chicago corn futures eased
from a two-week high on Friday as the market took a breather
after a short-covering rally which lifted prices 7.3 percent in
the past five sessions.
Soybeans slid following five days of gains, while wheat
edged lower ahead of a key U.S. government's supply-demand
report due on Monday.
For the week, the Chicago Board of Trade most-active corn
contract has gained 2.6 percent, soybeans are up 2.3
percent and wheat has added 1.3 percent. All three markets
are on track to record their first gain in three weeks.
"We saw a bullish trend in corn mainly due to
short-covering, the market is now waiting for the USDA report,"
said Kaname Gokon at brokerage Okato Shoji in Tokyo.
"The USDA is expected to reduce corn yields from what they
forecast in the August report but overall the crop is still
expected to be very large."
Corn hit more than a two-week high of $3.38-3/4 a bushel on
The USDA in its September supply and demand outlook is
likely to reduce the average corn yield to 173.4 bushels per
acre, down from 175.1 bpa on Aug. 12 but still a record high,
according to a Reuters analyst poll.
Analysts predicted the USDA would boost U.S. soybean yields
to a record of 49.2 bpa, up from 48.9 bpa in August.
U.S. Energy Information Administration data released at
mid-morning on Wednesday showing sharply lower production of
corn-based ethanol and decreased stocks of the biofuel was seen
as bullish for ethanol prices but slightly bearish for corn.
In what could be bearish for the soybean market, Brazil's
2016-17 crop is expected to be a record 103.1 million tonnes
early next year, an average of 12 forecasts showed, surpassing
this season's output by about 8 percent.
On Tuesday, Brazil's crop supply agency Conab at the
Agriculture Ministry estimated Brazil's 2015/2016 soybean crop
at 95.4 million tonnes in its 12th forecast.
Commodity funds were net buyers of CBOT corn, and wheat
futures on Thursday and net sellers in soybean futures, traders
Meanwhile, a U.S. government weather forecaster said
Thursday La Nina conditions were no longer likely to develop
during the Northern Hemisphere fall and winter 2016/17, saying
neutral conditions were more likely. nL1N1BK0P9
Grains prices at 0256 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 404.50 -1.50 -0.37% +0.43% 422.93 41
CBOT corn 337.00 -1.50 -0.44% +1.13% 333.02 61
CBOT soy 974.75 -2.00 -0.20% -0.08% 979.83 50
CBOT rice 9.57 $0.02 +0.26% +0.05% $9.78 37
WTI crude 47.24 -$0.38 -0.80% +3.82% $44.83 61
Euro/dlr $1.128 $0.002 +0.18% +0.36%
USD/AUD 0.7645 0.001 +0.07% -0.35%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral)