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GRAINS-Corn prices fall despite fears over hot, dry U.S. weather
July 12, 2017 / 2:55 AM / 2 months ago

GRAINS-Corn prices fall despite fears over hot, dry U.S. weather

    * Corn prices drop from one-year high
    * Soybeans fall for first time in eight sessions
    * Wheat edges lower despite hot weather

    By Colin Packham
    SYDNEY, July 12 (Reuters) - U.S. corn on Wednesday retreated
from a one-year high touched in the previous session as traders
squared positions ahead of a widely watched U.S. government
report, though losses were checked as dry U.S. weather stoked
fears of production losses.
    Soybeans fell for the first time in eight sessions as prices
edged down from a four-month peak, while wheat also declined.
     The most active corn futures on the Chicago Board of Trade
 dropped 0.66 percent to $4.11-1/2 a bushel after closing
down 0.1 percent in the previous session. Corn on Tuesday hit
its highest since June 2016 at $4.17-1/4 a bushel.
    The fall in prices comes as traders ready for a widely
watched U.S. Department of Agriculture report later in the
session.
    But analysts said fears of production losses as a result of
continued hot, dry weather across key growing regions provided a
floor to prices.
    "July is a key development month for corn, so the timing
makes prices acutely sensitive to hot weather during this
period," said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia. "Some weather models are
disastrous."
    Despite some scattered showers early on Tuesday across parts
of Iowa and Illinois, the top U.S. corn states, forecasts call
for continued hot, dry weather over the rest of the week during
a key phase for determining yields.
    The most active wheat futures dropped 0.5 percent to
$5.50-1/2 a bushel, having closed down 0.2 percent on Tuesday.
    The most active soybean futures declined 0.4 percent
to $10.39 a bushel. Soybeans firmed 0.4 percent on Tuesday, when
they marked their strongest since March 6 at $10.47 a bushel.
    The decline comes despite continued fears of production
losses in the United States from the recent dry weather.
    The USDA on Monday rated 62 percent of the U.S. soybean crop
in good-to-excellent condition, down from 64 percent the
previous week and below an average of analyst expectations.    
    Analysts already expect the USDA to lower its forecasts of
U.S. soybean ending stocks for the 2016-17 and 2017-18 marketing
years, and cut its estimate of U.S. 2017-18 total wheat
production.
        
 Grains prices at  0227 GMT
 Contract        Last   Change   Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat    550.50    -2.50    -0.45%       +0.09%  486.99    74
 CBOT corn     411.50    -2.75    -0.66%       -0.78%  397.95    71
 CBOT soy     1039.00    -4.25    -0.41%       -0.02%  952.81    91
 CBOT rice      12.04   -$0.03    -0.25%       +0.12%  $11.67    78
 WTI crude      45.76    $0.72    +1.60%       +3.06%  $45.33    57
 Currencies                                                        
 Euro/dlr      $1.148   $0.002    +0.15%       +0.73%              
 USD/AUD       0.7661    0.003    +0.35%       +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 Joseph Radford)
  

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