June 23, 2017 / 2:54 AM / 2 months ago

GRAINS-Corn set for biggest weekly decline in a year on friendly U.S. weather

    * Corn down 5.6 percent this week, falls for 2nd week in a
row
    * Soybeans suffer biggest weekly loss in six months
    * Forecasts of cool, wet weather in the U.S. Midwest weighs

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 23 (Reuters) - Chicago corn was poised for
its biggest weekly decline in a year on Friday with the market
falling for a second consecutive week, weighed down by forecasts
of crop-friendly weather in the U.S. Midwest.
    Soybeans faced their biggest weekly loss since December,
while wheat is set to end the week in negative territory
following two weeks of strong gains.
    The Chicago Board of Trade most-active corn contract
has given up 5.6 percent this week, biggest loss since June
2016.
    Soybeans are down nearly 3.5 percent for the week, the
most since December. In the previous session, the market hit a
low of $9.03 a bushel, the weakest since April 2016.
    Wheat is down around 1 percent after rallying 8.3
percent in the last two weeks.
    "Weather concerns for U.S. corn and soybean crops have
eased, both markets in bearish mood," said Kaname Gokon of Tokyo
brokerage Okato Shoji.
    "But for the wheat market we are expecting tighter supplies
following weather issues in the United States and Europe, that
should support prices."
    Corn and soybean prices are being pressured by more mild
temperatures moving into the U.S. Midwest crop belt. The month
of July weather is crucial for determining yields of the U.S.
corn crop.
    Weekly U.S. export sales of soybeans, corn and wheat were
generally in line with estimates, or worse.
    Much-needed rainfall is forecast in the coming days in the
northern U.S. Plains, where spring wheat crop has been suffering
from dry weather, while in France the extent of damage from
extreme heat is unclear.
    The wheat market is easing from multi-month highs reached
earlier this week. The gains were prompted in part by worries of
low protein content in the winter wheat harvest as farmers in
the top-growing state of Kansas continued to gather their crop
and dryness in northern Plains. 
    Soggy spring conditions in key crop-growing areas of the
Canadian Prairies left farmers unable to plant as much as they
intended, but canola seedings still look record-large, according
to a Reuters survey of 16 traders and analysts, ahead of a
government report next week.
    Investment funds were net sellers of all three commodities,
unloading an estimated 13,000 corn futures contracts, 12,500 soy
contracts and 2,500 wheat contracts, traders said.

 Grains prices at 0227 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  460.50  -0.75   -0.16%   -0.86%       440.75  59
 CBOT corn   362.50  -0.25   -0.07%   -1.69%       373.48  30
 CBOT soy    906.50  2.50    +0.28%   -1.33%       935.97  26
 CBOT rice   11.13   $0.02   +0.18%   -0.45%       $11.08  45
 WTI crude   42.83   $0.09   +0.21%   +0.71%       $47.17  25
 Currencies                                                
 Euro/dlr    $1.116  $0.001  +0.06%   -0.08%               
 USD/AUD     0.7545  0.000   +0.05%   -0.07%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
  

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