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GRAINS-Soy, corn, wheat edge up ahead of USDA harvest view
September 11, 2013 / 12:37 PM / 4 years ago

GRAINS-Soy, corn, wheat edge up ahead of USDA harvest view

* Soybeans end higher for first time this week
    * Traders weigh heat, rain in run-up to USDA report
    * Lanworth raises U.S. corn production outlook, cuts soy

 (Adds closing prices, analyst comment)
    By Tom Polansek
    CHICAGO, Sept 11 (Reuters) - U.S. soybean futures crawled
higher on Wednesday as hot weather in the U.S. Midwest
encouraged traders to expect a lower harvest outlook in a
government report due on Thursday.
    Corn and wheat futures also rose in tentative trading in the
run-up to the release of U.S. Department of Agriculture crop
data.
    The U.S. crop production and supply outlook is more
uncertain than usual because soybeans and corn were planted
later than normal in the spring due to rains. This will postpone
the start of the autumn harvest.
    Heading into the release of USDA data, traders wanted to
"lightly trade their perception the day prior to the report,"
said Tim Hannagan, an analyst at Walsh Trading.
    Chicago Board of Trade November soybeans rose 3-1/4
cents to $13.58-1/4 a bushel.
    A blast of late-summer heat baking the U.S. Midwest turned
attention back to dry conditions that are thought to have
stressed the soybean crop and lowered yields. 
    Light rainfall is expected in portions of the U.S. Midwest
corn and soybean growing region, but a large portion of the soy
area will remain dry, according to Commodity Weather Group. The
best chance for rain is from the Nebraska/Kansas and
Missouri/Iowa border in the western Midwest extending to
Illinois, Indiana and Ohio in the east, the firm said.
 
    Expectations for rains pressured soybean futures on Monday
and Tuesday.
    Traders are paying close attention to U.S. crop weather
because large harvests are needed to replenish low inventories.
The USDA's outlook on Thursday is not expected to be the final
word on crop supplies.
    "The market is probably more inclined to wait to see when
the combines roll and what the yield monitors tell us," said Ken
Morrison, founder of commodity newsletter Morrison on the
Markets.
    In its September production forecast on Thursday, the USDA
is expected to trim its soybean yield estimate to 41.2 bushels
per acre from 42.6 bushels in August, according to a Reuters
poll. 
    
    CORN, WHEAT SLIP
    December corn rose 3-1/2 cents to $4.72-1/2 a bushel.
December wheat gained 1-1/2 cents to $6.48 a bushel.
    Analysts expect the USDA to cut its estimate for the average
corn yield to 153.7 bushels per acre, down from 154.4 bushels
forecast in August.
    Crop forecaster Lanworth on Wednesday edged its U.S. corn
harvest forecast up to 13.396 million bushels, based on a yield
of 152.2 bushels per acre, from 13.330 million. The firm trimmed
its U.S. soybean production forecast. 
    In other news, private exporters reported the sale of
120,000 tonnes of U.S.-grown hard red winter wheat to Nigeria
for delivery this marketing year, the Agriculture Department
said on Wednesday. The 2013/14 marketing year for wheat opened
on June 1.       
    
 Prices at 3:36 p.m. CDT (2036 GMT)      
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  472.50     4.00   0.9%  -32.3%
 CBOT soy                  1358.25     3.25   0.2%   -4.3%
 CBOT meal                  460.90    -1.60  -0.4%    9.6%
 CBOT soyoil                 42.65    -0.08  -0.2%  -13.2%
 CBOT wheat                 648.00     1.50   0.2%  -16.7%
 CBOT rice                 1566.00    23.50   1.5%    5.4%
 EU wheat                   188.00     0.25   0.1%  -24.9%
 
 US crude                   107.73     0.34   0.3%   17.3%
 Dow Jones                  15,327      136   0.9%   17.0%
 Gold                      1365.00     1.41   0.1%  -18.5%
 Euro/dollar                1.3310   0.0043   0.3%    0.9%
 Dollar Index              81.5030  -0.3180  -0.4%    2.2%
 Baltic Freight               1628       87   5.7%  132.9%
 
 (Additional reporting by Gus Trompiz in Paris and Colin Packham
in Sydney; Editing by Richard Pullin, William Hardy, Peter
Galloway and David Gregorio)

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