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GRAINS-Corn hits one-week high as traders ready for USDA forecast
January 10, 2013 / 1:03 AM / 5 years ago

GRAINS-Corn hits one-week high as traders ready for USDA forecast

SYDNEY, Jan 10 (Reuters) - U.S. corn hit a one-week high on
Thursday, extending gains into a fourth straight session, as
traders continued to build positions ahead of the latest U.S.
Department of Agriculture crop reports later in the week.
    USDA will issue its latest supply-demand and quarterly U.S.
grain inventories reports on Friday.
    Corn has swung by the maximum daily trading limit six years
in a row on the day of the department's January announcements.
         
    FUNDAMENTALS  
    * Chicago Board Of Trade March corn rose 0.32 percent
to $6.96-1/2 a bushel, having gained 0.8 percent in the previous
session.
    * March soybeans rose 0.13 percent to $13.87-1/4 a
bushel, having closed down 0.07 percent on Wednesday.
    * March wheat rose 0.57 percent to $7.49-3/4 a bushel,
having closed down 0.67 percent on Wednesday. 
    * USDA is expected to raise its forecast for Brazil's
soybean harvest by 0.9 percent from last month to 81.8 million
tonnes, according to a Reuters poll. 
    * Soy prices weighed down by expectations that a
record-large soybean harvest in Brazil will reduce demand for
U.S. oilseeds.
    * Brazil, which competes with the United States for export
sales, on Wednesday raised its soybean production forecast to a
record 82.7 million tonnes, up 0.1 percent from its estimate
last month and 24 percent above last year's harvest.
 
    * Private U.S. exporters reported the sale of 120,000 tonnes
of optional-origin soybeans to top importer China for delivery
next marketing year, according to USDA. Optional-origin sales
allow for the commodity to come from the United States or other
nations. 
    * Traders on Thursday will assess USDA's weekly export sales
data. Sales from last week are projected at 200,000 to 400,000
tonnes for soybeans, 325,000 to 425,000 tonnes for wheat, and
100,000 to 200,000 tonnes for corn. 
    * U.S. government declares much of the central and southern
U.S. Wheat Belt a natural disaster area on Wednesday due to
persistent drought that imperils this year's winter wheat
harvest.
    * USDA will make its first estimate of winter wheat sowings,
based on a survey of growers. Analysts expect a 3.3 percent
increase from the previous crop. They said high prices
encouraged farmers to plant more wheat last fall, despite the
moisture-short seedbed. 
         
    MARKET NEWS  
    * The yen fell against the U.S. dollar on Wednesday,
returning to a trend that recently drove the currency to a
2-1/2-year low on expectations of more forceful Bank of Japan
policy and the possibility the central bank will raise its
inflation goal.  
    * Oil futures fell slightly on Wednesday after government
data showed U.S. fuel stocks rose sharply last week, a sign of
ample supply in the world's top consumer of oil.  
    * U.S. stocks rose on Wednesday, rebounding from two days of
losses, as investors turned their focus to the first prominent
results of the earnings season.  
    
    DATA/EVENTS (GMT) 
      China  Exports Year on Year         Dec      
      China  Imports Year on Year         Dec      
      China  Trade balance for Dec                 
0500  Japan  Leading Indicator For        November 
0745  France Industrial Output For        November 
0745  France CPI For                      December 
1200  UK     Bank Of England Rate Decision January 
1245  EZ     European Central Bank Rate Decision   
1330  EZ     ECB President Mario Draghi Holds News Conference 
1330  U.S.   Weekly Jobless Claims                 
1500  U.S    Wholesale Inventories For November    
    
        
  Grains prices at  0019 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     749.75     4.25  +0.57%    -0.10%     806.87   19
  CBOT corn      696.50     2.25  +0.32%    +1.13%     717.13   49
  CBOT soy      1387.25     1.75  +0.13%    +0.05%    1434.73   50
  CBOT rice      $15.26    $0.03  +0.16%    +2.01%     $15.19   49
  WTI crude      $93.18    $0.08  +0.09%    +0.03%     $89.34   73
  Currencies                                                
  Euro/dlr       $1.305  -$0.001  -0.08%    -0.21%
  USD/AUD         1.050   -0.001  -0.14%    -0.04%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Muralikumar
Anantharaman)

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