August 10, 2017 / 3:13 AM / in 10 months

GRAINS-Corn edges lower as traders ready for USDA report

    * USDA expected to lower production estimate
    * Dry weather expected to continue - threatening corn
    * Wheat edges lower, soybeans tick up

    By Colin Packham
    SYDNEY, Aug 10 (Reuters) - U.S. corn edged lower on Thursday
as traders readied for a widely watched U.S. Department of
Agriculture report that is anticipated to show lower production
as a result of recent dry weather.
    Wheat fell, giving back nearly half the gains from the
previous session, while soybeans edged higher.
    The most active corn futures on the Chicago Board Of Trade
 fell 0.2 percent to $3.85-1/2 a bushel by 0257 GMT, having
gained 0.7 percent in the previous session.
    Analysts said the USDA's first assessment of the 2017 corn
crop later in the session will drive market sentiment, at least
in the short-term.
    "The market is looking for the USDA to cut corn supply
estimates in tonight's report. Should it match those
expectations, then that might provide the market some support,"
said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia.
    "Nonetheless, the USDA report on this occasion is likely to
be seen as minor skirmish in a larger battle. U.S. Midwest
weather is that larger battle."
    Analysts expect the USDA to lower its estimate for U.S. corn
production to 166 bushels per acre (bpa), from 170.7 bpa as
recent dry weather crimps production.
    The unfavourable weather is expected to continue, with
models calling for dry weather across key producing regions for
the rest of the month.
    The most active soybean futures were up 0.1 percent to
$9.74-1/2 a bushel, having closed little changed on Wednesday.
    The most active wheat futures were down 0.3 percent to
$4.58 a bushel, having closed up 0.5 percent on Wednesday.
    Traders said soybeans were also under pressure from the USDA
report. Analysts expect the USDA to peg U.S. yields at 47.5 bpa,
compared with the USDA's trend-based forecast of 48.0 bpa.
    USDA said private exporters cancelled a sale of 130,000
tonnes of U.S. old-crop soybeans to unknown destinations.
 Grains prices at  0257 GMT
 Contract      Last   Change   Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat  458.00    -1.50    -0.33%       +0.22%  497.98    35
 CBOT corn   385.50    -0.75    -0.19%       +0.46%  391.26    51
 CBOT soy    974.50     1.25    +0.13%       +0.13%  994.13    45
 CBOT rice    12.23   -$0.09    -0.69%       +0.66%  $12.08    51
 WTI crude    49.53   -$0.03    -0.06%       +0.73%  $47.32    62
 Euro/dlr    $1.175  -$0.001    -0.09%       -0.03%              
 USD/AUD     0.7883    0.000    -0.04%       -0.37%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 (Reporting by Colin Packham; Editing by Amrutha Gayathri)
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