June 20, 2013 / 1:12 AM / 4 years ago

GRAINS-New-crop corn falls after U.S. Fed stimulus comments

SYDNEY, June 20 (Reuters) - U.S. new-crop corn fell for the
first time in four sessions on Thursday, retreating from a
two-week high as commodity markets reacted to comments by the
U.S. Federal Reserve signalling a slowdown in the pace of bond
purchases.
         
    FUNDAMENTALS  
    * Chicago Board Of Trade July wheat fell 0.6 percent to
$7.02-3/4 a bushel, having jumped 2.84 percent in the previous
session, the biggest jump since April 29, when it touched a
two-week high of $7.10-3/4 a bushel.
    * December corn fell 0.79 percent to $5.66 a bushel,
having gained 3.63 percent in the previous session, the biggest
jump since April 29. New-crop corn hit a 16-day high in the
previous session. 
    * November soybeans fell 0.34 percent to $13.06-1/4 a
bushel, having firmed 1.63 percent on Wednesday.
    * Wheat supported by expectations of U.S. domestic demand,
underpinning strong grains in previous session.
    * Corn and soybeans supported by forecasts for hotter
weather in coming weeks.
    * Federal Reserve Chairman Ben Bernanke said on Wednesday
the U.S. economy is expanding strongly enough for the central
bank to begin slowing the pace of its bond-buying stimulus later
this year. 
    * The Fed bond buying program has largely supported
commodities because it has lowered the value of the U.S. dollar,
making goods priced in dollars cheaper for other currencies.
    * China made a rare purchase of about 200,000 tonnes of
wheat from France, European traders said. 
    * The last time China made a significant purchase of French
wheat was in the 2004/2005 season, when it bought 667,358
tonnes, data from French farm office FranceAgriMer showed.
 
    * Some analysts said the U.S. winter wheat harvest might be
smaller than expected, following drought and spring freeze
damage in the U.S. Plains and excessive rain in the Midwest.
    * U.S. Energy Information Administration reported that U.S.
ethanol output fell by 11,000 barrels per day in the latest
week, to 873,000 bpd, while ethanol stocks rose to 16.45 million
barrels, up 458,000. 
    * Private analytics firm Informa Economics estimated U.S.
soybean plantings at 77.756 million acres (31.5 million
hectares), down from its May forecast of 78.286 million but
above the U.S. Department of Agriculture's figure of 77.1
million.
         
    MARKET NEWS  
    *  The U.S. dollar reversed early losses and rose against
the euro and yen on Wednesday after the Federal Reserve's
Federal Open Market Committee said it sees diminished downside
risks to the outlook for the economy and the labor market.
  
    * Oil prices were pressured on Wednesday after U.S. Federal
Reserve Chairman Ben Bernanke said the Fed might reduce the
amount of money it pumps into the economy later this year, while
higher crude stocks in the United States also hurt prices. 
 
    * U.S. stocks fell more than 1 percent on Wednesday after
Federal Reserve Chairman Ben Bernanke said the central bank
would start to reduce its stimulus measures later this year if
the economy is strong enough.  
    
    DATA/EVENTS (GMT)
0145  China    China's HSBC flash PMI   June
0658  France   Markit Mfg Flash PMI     Jun        FRPMIF=ECI  
0728  Germany  Markit Mfg Flash PMI     Jun        DEPMIF=ECI  
0758  EZ       Markit Mfg flash PMI     Jun        EUPMMF=ECI  
1230  U.S.     Jobless claims           Weekly     ECONUS  
1400  U.S.     Philly Fed business indx Jun        USPFDB=ECI  
1400  U.S.     Exist. home sales % chg  May        USEHSP=ECI  
1400  U.S.     Existing home sales      May        USEHS=ECI  
1430  U.S.     EIA natural gas stocks   Weekly     USOILN=ECI 
    
  Grains prices at  0035 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     702.75    -4.25  -0.60%    +3.27%     696.48   64
  CBOT corn      566.00    -4.50  -0.79%    +5.11%     553.16   59
  CBOT soy      1306.25    -4.50  -0.34%   -13.64%    1478.29   51
  CBOT rice      $16.18   -$0.11  -0.64%    -0.92%     $15.64   66
  WTI crude      $97.45   -$0.79  -0.80%    -1.01%     $95.38   62
  Currencies                                                
  Euro/dlr       $1.329  -$0.010  -0.77%    -0.58%
  USD/AUD         0.931   -0.018  -1.86%    -2.46%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Richard Pullin)

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