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GRAINS-Wheat eases after 2-session rally, corn down 1.3 pct
June 19, 2017 / 3:17 AM / 2 months ago

GRAINS-Wheat eases after 2-session rally, corn down 1.3 pct

    * Wheat down on easing weather worries, corn falls 1.3 pct
    * Chicago soybeans rise for third session on strong demand

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, June 19 (Reuters) - Chicago wheat futures slid on
Monday as the market took a breather after rallying around 5
percent in the last two sessions on the back of dry weather
hitting U.S. yields.
    Corn gave up 1.3 percent on easing concerns over dryness in
the U.S. Midwest, while soybean prices gained for a third
straight session on strong demand.
    Chicago wheat climbed to its highest in almost a year
at $4.68-1/2 a bushel on Friday as dry weather threatened to
reduce U.S. spring wheat crop production.
    Reports of disappointing yields in early harvesting of hard
red winter wheat provided additional support.
    "There have been weather concerns for corn as well as spring
wheat in the U.S.," said Phin Ziebell, an agribusiness economist
at National Australia Bank.
    "The corn market is giving up gains as there is pressure on
crude oil prices and the weather is looking better."
    Corn prices often track movements in the crude oil market
with rising use of crops to make alternative fuels.
    Oil prices fell early on Monday, weighed down by high
supplies despite an OPEC-led initiative to cut production to
tighten the market.
    Forecaster Commodity Weather Group said that the rain
outlook was still very limited in the western Dakotas and
Montana during the next two weeks, which will hinder development
of spring wheat in those areas.
    Concerns about crops in the Black Sea region buoyed wheat
prices. Wheat exports from Russia, Ukraine and Kazakhstan were
expected to fall 3.3 percent to 50.4 million tonnes in the
upcoming season, which starts on July 1, according to a Reuters
poll. Production was also seen falling.
    The monthly U.S. National Oilseed Processors Association
report released on Thursday, which showed crushings well above
analyst forecasts, was still adding strength to the soybean
market.
    Large speculators trimmed their net short position in
Chicago Board of Trade corn futures in the week to June 13,
regulatory data released on Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net short position in
soybeans.
    
 Grains prices at  0251 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  462.25  -3.00   -0.64%   +1.87%       436.25  71
 CBOT corn   379.00  -5.00   -1.30%   -0.13%       373.99  53
 CBOT soy    942.25  3.25    +0.35%   +0.80%       943.39  63
 CBOT rice   11.42   $0.02   +0.18%   -0.48%       $10.94  65
 WTI crude   44.58   -$0.16  -0.36%   +0.27%       $47.72  32
 Currencies                                                
 Euro/dlr    $1.120  $0.000  -0.01%   +0.48%               
 USD/AUD     0.7619  0.000   +0.04%   +0.57%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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