* Soybeans, corn, wheat up as financial markets rally
* U.S. Fed surprises markets by sticking to stimulus
* Corn gains capped by expectations of record harvest
(Adds details, quotes)
By Naveen Thukral
Sept 19 Chicago soybean and corn futures rose
for a second consecutive session on Thursday after the U.S.
Federal Reserve surprised investors and analysts by maintaining
its stimulus programme, boosting the appetite for risk.
Expectations of a record-large U.S. crop capped gains in
corn futures although there were concerns over wet weather
delaying harvest in some parts of the U.S. grain belt.
Asian shares and currencies rallied broadly after the
Federal Reserve stunned markets and decided not to taper its
asset-buying programme, sending U.S. bond yields and the dollar
into a tailspin.
"There is macro-economic influence on agricultural markets
after the surprise Fed decision to continue with stimulus
programme," said Joyce Liu, investment analyst, Phillip Futures
"Most commodities are firm because the dollar has weakened."
Chicago Board of Trade December corn rose 0.4 percent
to $4.58 a bushel by 0311 GMT, while November soybeans
added 0.4 percent to $13.53-1/2 a bushel. December wheat
gained 0.2 percent to $6.48 a bushel.
Trade has been subdued as brokers awaited more yield and
quality data from the start of the U.S. corn and soy harvest.
The corn market has been under pressure since the USDA last
week issued a larger-than-expected forecast of this year's crop.
But a slow start to the harvest, along with separate USDA data
suggesting a smaller planted area than previously estimated,
Spot basis bids for corn and soybeans were mostly steady to
higher across the U.S. Midwest after rains slowed early harvest
activity and led to reduced deliveries of the crops to
processors and ethanol plants, dealers said.
Rain is forecast over a broad area of the U.S. Midwest,
Delta and southern Plains late this week, which will slow the
early corn harvest but boost winter wheat seeding prospects, an
agricultural meteorologist said on Wednesday.
There was additional support for soybeans on concerns that a
late-summer dry spell in the Midwest could hurt 2013 yield
prospects, keeping supplies tight throughout the 2013/14
marketing year that began Sept. 1.
The U.S. Department of Agriculture last week slashed its
forecast of 2013/14 U.S. soybean ending stocks to 150 million
bushels, from 220 million in August.
The USDA on Tuesday said private exporters reported sales of
2.112 million tonnes of U.S. soybeans, with most earmarked for
China for delivery in 2013/14. The remainder was sold to unknown
The attention is now shifting to South America where farmers
have started planting soybeans.
Rains fell over parts of Brazil's top soy growing state Mato
Grosso on Wednesday, allowing for some planting even though
conditions are still far from ideal, an agro meteorologist said.
Prices at 0311 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 648.00 1.50 +0.23% 866.01 61
CBOT corn 458.00 1.75 +0.38% 757.18 37
CBOT soy 1353.50 5.75 +0.43% 1575.66 40
CBOT rice $15.64 $0.03 +0.19% $15.49 51
WTI crude $108.47 $0.40 +0.37% $89.60 54
Euro/dlr $1.353 $0.124
USD/AUD 0.950 -0.105
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral; Editing By Tom Hogue)