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GRAINS-US wheat, corn hit three-month lows; soy falls on profit taking
June 3, 2014 / 11:18 AM / 3 years ago

GRAINS-US wheat, corn hit three-month lows; soy falls on profit taking

(Updates with closing prices, adds new analyst quote)
    * Wheat down for 10th session, global supplies weigh
    * Corn drops on bearish crop ratings
    * Profit-taking, planting pace weigh on soybeans

    By Mark Weinraub
    CHICAGO, June 3 (Reuters) - U.S. corn futures fell 1.6
percent, their fourth straight losing session, on Tuesday on
forecasts for rain across the U.S. Midwest that should spur
growth of the recently seeded crop, traders said.
    Expectations for a bumper harvest of corn already were high
following timely planting and a U.S. government report that
showed early development was better than expected, adding to the
bearish sentiment hanging over the market.
    The good growing weather also pressured soybeans, which
dropped 1.3 percent.
    "The bears continue to have the grain markets firmly in
their grip as excellent weather is expected again for at least
the next 10 days across most growing areas," said Sterling
Smith, futures specialist at Citigroup in Chicago. "It is very
early in the growing season and there is still plenty of time
for a weather malfunction, but this crop is off to a very good
start.
    Wheat prices sagged for the 10th session in a row, hitting a
three-month low, on pressure from the drop in corn prices and
plentiful global supplies. 
    The U.S. Agriculture Department said on Monday afternoon
that good-to-excellent ratings for corn were 76 percent, beating
market expectations by 6 percentage points. The weekly report
also showed that the pace of soybean planting surged ahead of
the normal pace as northern farmers took advantage of near
perfect conditions to make up for their delayed start. 
 
    Chicago Board of Trade corn for July delivery settled
down 7-1/4 cents at $4.58-1/4 a bushel. Prices bottomed out at
$4.56, the lowest for the front-month contract since Feb.
28.
    "Funds started liquidating last week," said Karl Setzer,
market analyst with MaxYield Cooperative. We are just seeing a
continuation of that. The downside has quickly become the path
of least resistance and that is where we are seeing the market
head."
   CBOT July soybeans were 19-1/4 cents lower at
$14.81-1/4 a bushel. Traders noted some unwinding of bull
spreads, with the closely watched July-November SN4-X4 spread
narrowing by 11-1/4 cents.
    CBOT July wheat was 8-1/4 cents lower at $6.12-1/2 a
bushel. The session low of $6.11 was the lowest for the
front-month contract since hitting $6.10 on March 3. 
    CBOT wheat has fallen 9.2 percent during the 10-session
losing streak, which is the market's longest string of declines
in 20 years. 
 RIC    Name              Last      Pct     Net      Close
                                    Change  Change   
 1Cc1   CORN JUL4           457.25   -1.56    -7.25      465.5
 1Sc1   SOYBEANS JUL4      1481.75   -1.28   -19.25     1500.5
 1SMc1  SOY MEAL JUL4        499.4   -1.26     -6.4        506
 1BOc1  SOYBEAN OIL JUL4     38.39     0.1     0.04      38.31
 1Wc1   WHEAT SRW JUL4      612.25   -1.33    -8.25     620.75
 1RRc1  ROUGH RICE JUL4      14.55   -2.12   -0.315     14.865
 BL2c1  M.WHEAT EUR NOV4    189.75   -0.39    -0.75      190.5
 CLc1   LIGHT CRUDE JUL4    102.67     0.2      0.2     102.47
 .DJI   DJ INDU AVERAGE   16734.29   -0.06    -9.34   16743.63
 XAU=   GOLD                1245.4  #N/A        1.4       1244
 .BADI  BALTIC EXCH DRY        948     1.5       14        934
 .DXY   US DOLLAR INDEX     80.529   -0.14   -0.115     80.644
 
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb. 

 (Reporting by Mark Weinraub; Editing by Chizu Nomiyama)

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