August 5, 2013 / 1:27 AM / 4 years ago

GRAINS-Corn falls to near 3-year low, wheat rises for 2nd day

SINGAPORE, Aug 5 (Reuters) - Chicago corn lost more ground
on Monday, falling to its lowest since November, 2010, while
soybeans were little changed after suffering two weeks of deep
losses due to forecasts of crop-friendly weather across the U.S.
Midwest.
    Wheat rose for a second consecutive session as strong global
demand underpinned the market although gains were capped by
weakness in corn.
    
    FUNDAMENTALS
    * The weather outlook continues to reinforce a bearish view
on agricultural markets with rain and cool temperatures aiding
crops and boosting hopes of record U.S. supplies.
    * Widely scattered thunderstorms hit the U.S. grain belt on
Thursday, with the biggest storms bringing as much as 5 inches
of rain in central and southeastern Nebraska, eastern Kansas and
west-central Missouri.
    * Two private forecasters, FCStone and Lanworth, last week
put the 2013 U.S. corn crop above the current outlook of the
U.S. Department of Agriculture.
    * Still, late planting has left much corn and soybeans well
behind schedule and vulnerable to damage if temperatures fall
before harvest.
    * Large speculators increased their net short position in
Chicago Board of Trade corn futures in the week to July 30,
regulatory data released on Friday showed. 
    * The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.
    * The wheat market is being supported by strong global
demand for U.S. supplies.
    * Japan bought nearly 90,000 tonnes of U.S. western white
wheat in a tender on Thursday, marking the first purchase of the
variety by its top buyer after the discovery of a genetically
modified version of the grain in Oregon.
    
    MARKETS NEWS
    * The New Zealand dollar skidded nearly 2 U.S. cents to
one-year lows on Monday morning as investors feared the worst
after major dairy exporter, Fonterra, found botulism bacteria in
some of its products. 
    * Oil futures fell on Friday as U.S. jobs data came in below
expectations, tempering economic optimism that had pushed Brent
crude during the session to its highest level in four months,
and prompting some investors to take profits. 
    * The Dow industrials and S&P 500 ended at record highs for
a second day on Friday, posting modest gains despite a mixed
employment report that showed U.S. hiring slowed in July. 

DATA/EVENTS (GMT) 
0753 Germany Services PMI           
0758 Euro zone Markit Services PMI  
0830 Euro zone Sentix index         
0900 Euro zone Retail sales         
1400 U.S. ISM Non-manufacturing PMI 
1400 U.S. Employment trend index    

  Prices at  0036 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     662.50     2.00  +0.30%   866.49   51
  CBOT corn      461.75    -2.00  -0.43%   757.30   19
  CBOT soy      1180.50    -1.00  -0.08%  1569.89   28
  CBOT rice      $15.79   -$0.02  -0.09%   $15.49   56
  WTI crude     $106.35   -$0.59  -0.55%   $89.53   57
  Currencies                                                
  Euro/dlr       $1.327   $0.098  
  USD/AUD         0.889   -0.166 
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                                                    
    

 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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