July 31, 2019 / 4:19 AM / 2 months ago

GRAINS-Chicago corn futures tick up, U.S. crop condition caps gains

    * Corn firm as market recovers from Monday's 7-week low
    * Wheat gains ground, recoups some of last session's losses

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, July 31 (Reuters) - Chicago corn futures edged
higher on Wednesday with bargain-buying supporting prices after
the market dropped to its lowest in seven weeks, although gains
were limited by improved condition of the U.S. crop.
    Soybeans remained under pressure after closing lower on
Tuesday on renewed concerns over U.S.-China trade war, while
wheat gained ground, recouping some of last session's losses.
    The Chicago Board of Trade most-active corn contract
rose 0.4% to $4.22-1/2 a bushel by 0354 GMT, soybeans
gained 0.2% to $8.98-1/4 a bushel and wheat added 0.4% to
$4.99-1/4 a bushel. 
    The corn market on Monday dropped to its lowest since June
11 at $4.12 a bushel.
    The U.S. Department of Agriculture in its weekly crop
progress report said 58% of U.S. corn was in good to excellent
condition, up one percentage point from last week. Analysts had
on average expected 57%.
    "The crop condition is fine and now everyone is awaiting
acreage report due next month," said a Singapore-based trader.
"The acreage report will provide a direction to corn prices."
    The market is on edge about the crop's size and condition
after heavy rains caused unprecedented planting delays this
spring. It is waiting for the USDA to issue updates on how much
corn and soybeans were planted in a report next month.
    Traders are also watching the new round of U.S.-China talks
this week to settle the trade war that has slashed U.S. soybean
exports to China. But dealers were wary about chances of a
breakthrough.
    U.S. President Donald Trump on Tuesday warned China against
waiting out his first term to finalise any trade deal, saying if
he wins re-election in the November 2020 presidential contest,
the outcome could be no agreement or a worse one.
    Trump said China appeared to be backing off on a pledge to
buy U.S. agricultural products, which U.S. officials have said
could be a goodwill gesture and part of any final pact.
    The USDA is expected to report that 4.782 million short
tonnes, or 159.4 million bushels, of soybeans were crushed at
U.S. processing plants in June, according to the average
forecast of eight analysts surveyed by Reuters ahead of monthly
data.
    A heatwave in the European Union's main wheat producers last
week helped farmers to make rapid progress with harvesting, with
some crop forecasts being raised, experts said on Tuesday.

    Record-high temperatures in France, Germany and Britain
created ideal conditions for wheat harvesting, with the dry,
warm weather allowing mechanical combine harvesters to operate
at full capacity.
    
 Grains prices at 0354 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  499.25  2.00    +0.40%   +0.66%       514.05  45
 CBOT corn   422.50  1.50    +0.36%   -0.47%       439.78  29
 CBOT soy    898.25  1.50    +0.17%   -0.31%       912.53  41
 CBOT rice   12.09   -$0.01  -0.04%   -0.86%       $11.77  60
 WTI crude   58.47   $0.42   +0.72%   +2.81%       $57.56  
 Currencies                                                
 Euro/dlr    $1.115  $0.003  +0.26%   +0.08%               
 USD/AUD     0.6890  -0.002  -0.26%   -0.86%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu and
Gopakumar Warrier)
  
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