August 27, 2013 / 3:28 AM / 4 years ago

GRAINS-US corn eases from 1-month top, soy dips after 2-day rally

* December corn dips after biggest 1-day rally in 4 months
    * New-crop soybeans fall from 11-month high, wheat eases
    * Forecasts for dry weather in US crop belt underpin prices

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Aug 27 (Reuters) - Chicago corn edged lower on
Tuesday, taking a breather after posting its biggest daily gain
in nearly four months in the previous session on worries over
crop-threatening dry weather, while soy eased from its highest
in 11 months.
    Wheat tracked the weakness in corn and soybeans, slipping
from a three-week top hit on Monday.
    The United States is on track to produce a record-large corn
crop this year but hot and dry weather across the Midwest this
week could potentially cut yields. Buyers are expecting all-time
high U.S. corn production to ease three years of tight supplies.
    Chicago Board of Trade December corn fell 0.3 percent
to $4.99 a bushel by 0236 GMT, after rising to its highest in
over a month and closing up more than 6 percent on Monday.
November soybeans fell 0.2 percent to $13.86-1/2 a bushel,
off previous session's high of $13.98.
    Spot-month wheat slipped 0.4 percent to $6.52-1/2 a
bushel, after hitting its highest since Aug. 5 on Monday.
    Forecasts for stressful weather in the U.S. farm belt
boosted prices in the prior session as corn and soybeans are
less mature than normal for this time of the year, putting them
at a greater risk of damage. 
    Soybeans are more vulnerable to dry weather as the crop is
entering the critical pod-filling stage of development.
    "America is coming out of last year's drought so the market
is very nervous about the weather," said Ole Houe, an analyst at
Sydney-based brokerage IKON Commodities.
    "The latest dryness is unlikely to do much harm to corn but
beans are bit more prone to damage."
    Old-crop U.S. supplies are tight due to strong demand and a
poor harvest last year, when the United States suffered its
worst drought in more than half a century.
    The U.S. Department of Agriculture, in a weekly
crop-progress report on Monday, rated 59 percent of the
country's corn crop as good to excellent, down 2 percentage
points. Soybeans were rated 58 percent good to excellent, down 4
percentage points from a week ago. 
    In Iowa, the top producer of both crops,
"higher-than-average temperatures, coupled with the lack of
significant precipitation, heightened concerns over soil
moisture and crop conditions", the USDA said.
    U.S. corn harvest is expected to be historically large
despite the concerns about dryness.
    Farm advisory Pro Farmer on Friday projected record U.S.
2013 corn production of 13.46 billion bushels, based on a yield
of 154.1 bushels per acre. The USDA last forecast a 13.763
billion-bushel crop, with a yield of 154.4 bushels per acre.
    For soybeans, Pro Farmer forecast U.S. production at 3.158
billion bushels, with an average yield of 41.8 bushels per acre
- which would be the fourth-largest in history. The estimate is
3 percent below USDA's latest outlook for a crop of 3.255
billion bushels, with a yield of 42.6 bushels per acre.

  Prices at  0236 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     664.50    -2.25  -0.34%   866.56   61
  CBOT corn      499.00    -1.50  -0.30%   758.54   66
  CBOT soy      1386.50    -3.00  -0.22%  1576.76   68
  CBOT rice      $15.94    $0.04  +0.28%   $15.50   78
  WTI crude     $106.43    $0.51  +0.48%   $89.53   54
  Currencies                                                
  Euro/dlr       $1.337   $0.108  
  USD/AUD         0.898   -0.157 
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                                         
 

 (Editing by Himani Sarkar)

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