April 27, 2017 / 3:18 AM / 3 months ago

GRAINS-Corn firms after deep losses, concerns about exports to Mexico

3 Min Read

    * Corn up 0.2 pct after Wednesday's 1.3 pct fall
    * Concerns over U.S. exports to Mexico cap gains
    * Soybeans, wheat rise on bargain buying

 (Adds details, quotes)
    SINGAPORE, April 27 (Reuters) - Chicago corn futures edged
higher on Thursday as the market took a breather following deep
decline in the last session on concerns over exports to Mexico
should the United States withdraw from the North American Free
Trade Agreement.
    Wheat and soybean edged higher on bargain buying.
    The Chicago Board Of Trade most-active corn contract
rose 0.2 percent to $3.67-1/2 a bushel by 0257 GMT, having
closed down 1.3 percent in the previous session.
    Soybeans climbed 0.2 percent to $9.58-3/4 a bushel,
having closed down 0.9 percent on Wednesday, and wheat
gained 0.2 percent to $4.27-1/2 a bushel, having closed down 0.1
percent in the previous session.
    The corn market is likely to struggle to rally as U.S.
weather improves for planting the crop.
    "Meteorologists removed some of the rain in their extended
forecasts for the U.S. Midwest, which prompted traders to also
remove some of their weather premium," said Tobin Gorey,
director of agricultural strategy at Commonwealth Bank of
Australia.
    "We suspect a media blitz yesterday regarding U.S. trade
policy was probably also a contributor to the day's falls."
    Corn was pressured on Wednesday 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 drew some support from concerns about unfavourable
weather expected in the southern Plains this weekend that could
damage developing winter wheat.
    Commodity funds were net sellers of CBOT corn and soybean
futures contracts on Wednesday, traders said. They were net even
in wheat and net buyers of soyoil.

 Grains prices at  0257 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  427.50  1.00    +0.23%   +0.12%       439.38  34
 CBOT corn   367.50  0.75    +0.20%   -1.14%       368.39  43
 CBOT soy    958.75  2.25    +0.24%   -0.65%       971.69  42
 CBOT rice   9.46    $0.03   +0.27%   +1.72%       $9.90   13
 WTI crude   49.40   -$0.22  -0.44%   -0.32%       $50.19  31
 Currencies                                                
 Euro/dlr    $1.091  $0.001  +0.08%   -0.12%               
 USD/AUD     0.7488  0.002   +0.21%   -0.62%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
          

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  

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