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GRAINS-Corn up for 5th day as dry weather threatens U.S. crop; wheat firm
June 8, 2017 / 3:18 AM / 3 months ago

GRAINS-Corn up for 5th day as dry weather threatens U.S. crop; wheat firm

    * Corn hovers near last session's 1-year high on U.S.
dryness
    * Wheat gains more ground, near 1-month top; soybeans firm

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 8 (Reuters) - Chicago corn rose for a fifth
consecutive session on Thursday and traded near a one-year high
hit in the previous session as concerns over dry weather across
the U.S. Midwest triggered short-covering.
    Wheat traded near its highest level in more than a month on
adverse U.S. weather while soybeans gained on the back for
higher corn prices.
    The Chicago Board Of Trade most-active corn contract
rose 0.4 percent to $3.86-1/4 a bushel by 0256 GMT, having
gained 2 percent in the previous session when prices climbed to
$3.87 a bushel, the highest since June 2016.
    Wheat added 0.5 percent to $4.46-3/4 a bushel after
closing up 2 percent on Wednesday when prices hit highest since
May 4 at $4.48-3/4 a bushel. Soybeans gained 0.3 percent to
$9.33-1/2 a bushel.
    Hot and dry weather in the northern U.S. Plains and northern
Midwest is expected over the weekend, potentially damaging
crops.
    The U.S. corn crop is still a few weeks from its key
pollination phase, which usually occurs in July.
    Weather jitters come as commodity funds hold large net short
positions in corn, wheat and soybeans, leaving the markets
vulnerable to short-covering.
    Funds were net buyers of CBOT corn, wheat and soybean
futures on Wednesday.
    "Certainly there are some concerns about crop conditions in
the United States, especially for corn but steep decline in oil
prices might partly offset those gains," said Phin Ziebell, an
agribusiness economist at National Australia Bank.
    "It might not be profitable to make ethanol."
    Oil prices slid 5 percent on Wednesday to a one-month low,
after an unexpected increase in U.S. inventories of crude and
gasoline fanned fears that output cuts by major world oil
producers have not done much to drain a global glut.
    The corn market closely tracks moves in crude oil prices
with increasing use of crops in making renewable fuels.
    The U.S. Department of Agriculture on Monday rated 68
percent of the corn crop in good to excellent condition, up from
65 percent a week earlier, but the figure was down from 75
percent a year ago.
    The U.S. Agriculture Department's monthly crop reports,
which have traditionally provided huge shocks to the market,
have been met by a shrug in 2017, with price moves and volume
muted by the massive supply of grains.
    
 Grains prices at 0256 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  446.75  2.00    +0.45%   +2.52%       434.78  74
 CBOT corn   386.25  1.50    +0.39%   +2.39%       371.74  74
 CBOT soy    933.50  2.75    +0.30%   +1.08%       950.64  54
 CBOT rice   11.24   $0.00   +0.04%   +1.26%       $10.56  71
 WTI crude   45.93   $0.21   +0.46%   -4.69%       $48.31  29
 Currencies                                                
 Euro/dlr    $1.126  $0.000  +0.02%   -0.16%               
 USD/AUD     0.7537  -0.001  -0.12%   +0.41%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Vyas Mohan)
  

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