April 27, 2017 / 1:23 AM / 4 months ago

GRAINS-Corn extends losses into second session on NAFTA worries

    SYDNEY, April 27 (Reuters) - U.S. corn edged lower on Thursday, extending two sessions of declines to nearly 1.5
percent, on concerns over exports to Mexico should the United States withdraw from the North American Free Trade
Agreement (NAFTA).
         
    FUNDAMENTALS  
    * The most active corn futures on the Chicago Board Of Trade fell 0.1 percent to $3.66-1/2 a bushel, having
closed down 1.3 percent in the previous session.
    * The most active soybean futures climbed 0.31 percent to $9.59 a bushel, having closed down 0.9 percent on
Wednesday.
    * The most active wheat futures slipped 0.18 percent to $4.25 a bushel, having closed down 0.23 percent in
the previous session. 
    * Corn pressure by jitters about U.S. exports to Mexico after a senior Trump administration official said a draft
executive order to withdraw the United States from NAFTA, a U.S., Mexico and Canada trade pact, is under
consideration.
    * Soybeans faced additional pressure from weakness in Brazil's currency, the real, which could prompt Brazilian
farmers to sell more of their record-large soybean harvest. 
    * Wheat draws some support from concerns about unfavourable weather expected in the southern Plains this weekend
that could damage developing winter wheat.
             
    MARKET NEWS  
    * The dollar clung to gains against the yen on Thursday after U.S. President Donald Trump's tax plan offered no
fresh surprises, halting the greenback's rally, while the market awaited the European Central Bank's upcoming
monetary policy decision.  
    * Oil prices rebounded from early losses on Wednesday after the U.S. government data showed a
larger-than-expected falloff in crude inventories, which encouraged buying after several days of selling on worries
that a global crude glut was persisting despite output cuts by producing countries.  
    * U.S. stocks ticked lower on Wednesday following two sessions of strong gains as strong corporate earnings were
offset by uncertainty over the feasibility of a proposed business tax cut.  
    
    DATA/EVENT AHEAD (GMT) 
0600  Germany               GfK consumer sentiment           May 
0900  Euro zone             Business climate                 Apr 
0900  Euro zone             Consumer confidence final        Apr 
1145  European Central Bank interest rate decision 
1200  Germany               Consumer prices                  Apr 
1230  U.S.                  Durable goods                    Mar 
1230  U.S.                  Advance goods trade balance      Mar 
1230  U.S.                  Weekly jobless claims 
1330  ECB holds news briefing after policy meeting 
1400  U.S.                  Pending homes sales              Mar 
       
 Grains prices at 0055 GMT
 Contract       Last   Change  Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat   426.00    -0.50   -0.12%       -0.23%  439.33    32
 CBOT corn    366.50    -0.25   -0.07%       -1.41%  368.36    43
 CBOT soy     958.00     1.50   +0.16%       -0.73%  971.67    42
 CBOT rice      9.50    $0.07   +0.69%       +2.15%   $9.90    13
 WTI crude     49.37   -$0.25   -0.50%       -0.38%  $50.19    31
 Currencies                                                      
 Euro/dlr     $1.091   $0.000   +0.04%       -0.16%              
 USD/AUD      0.7479    0.001   +0.09%       -0.74%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Sherry Jacob-Phillips)
  

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