December 8, 2014 / 7:08 PM / 3 years ago

GRAINS-Corn dips in setback from four-session rally

* Traders await USDA crop report due on Wednesday
    * U.S. soy stocks to tighten due to export demand
    * Chinese buyers to sign deals for U.S. soy next week

 (Updates with U.S. trading, changes byline/dateline from
PARIS/SYDNEY)
    By Tom Polansek
    CHICAGO, Dec 8 (Reuters) - U.S. corn futures sagged on
Monday in a setback from a four-session rally, while soybeans
were little changed following a three-day climb.
    Wheat edged higher on technical and fund-driven buying.
    Some traders booked profits after recent gains in corn as
they waited for the U.S. Department of Agriculture to update
global supply and demand estimates in a monthly crop report due
on Wednesday. 
    "You have people stepping out of the market on the rally,"
said Jim Gerlach, president of brokerage A/C Trading.
    Still, soybean prices fluctuated between positive and
negative territory amid strong demand for soy and soymeal,
traders said.
    Chicago Board of Trade January soybean futures were up
0.3 percent to $10.39 a bushel by 12:55 p.m. CDT (1855 GMT). On
Friday, the contract rose 2.5 percent after touching a one-week
high of $10.40-3/4.
    CBOT March corn fell 1.1 percent to $3.90-3/4 a
bushel, having closed up 1.3 percent on Friday.
    The USDA, in Wednesday's report, is expected to raise its
forecasts for corn and wheat stocks and to cut its outlook for
soybean supplies due to strong export demand. 
    "The export shipments, particularly to China, have been
amazing, but that demand tends to peak out at this time of year
as the demand shifts to South America," said Tomm Pfitzenmaier,
analyst for Summit Commodity Brokerage.
    Representatives of six Chinese soybean buyers on Dec. 16
will sign agreements with U.S. exporters to buy an unspecified
amount of soybeans at a signing ceremony in
Chicago. 
    Private exporters struck separate deals to sell 130,000
tonnes of U.S. soybeans to Spain and 136,000 tonnes of U.S. corn
to Japan for delivery in the 2014/15 marketing year, which began
on Sept. 1, the USDA said on Monday. 
    Soy prices rose last week on higher-than-expected weekly
export U.S. sales and an additional 240,000 tonne sale to China
reported on Friday. However, corn and soybean prices remain
capped by record U.S. production, analysts said.
    CBOT March wheat futures rose 0.7 percent to $5.98-1/4
a bushel.
    
 Prices at 12:47 p.m. CST (1846 GMT)                      
 
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  391.75    -3.25  -0.8%   -7.2%
 CBOT soy                  1038.25     2.25   0.2%  -20.9%
 CBOT meal                  398.50     4.30   1.1%   -9.0%
 CBOT soyoil                 31.80    -0.21  -0.7%  -18.1%
 CBOT wheat                 598.50     4.50   0.8%   -1.1%
 CBOT rice                 1205.50    -1.00  -0.1%  -22.3%
 EU wheat                   188.75     0.75   0.4%   -9.7%
 
 (Additional reporting by Gus Trompiz in Paris and Colin Packham
in Sydney; Editing by William Hardy and Meredith Mazzilli)

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