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GRAINS-Corn eases for 2nd day on supply pressure, wheat ticks up
September 27, 2017 / 3:02 AM / 2 months ago

GRAINS-Corn eases for 2nd day on supply pressure, wheat ticks up

    * Corn loses more ground as market eyes near-record U.S.
crop
    * Wheat up on short-covering ahead of US report, soy
struggles

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 27 (Reuters) - Chicago corn futures slid for
a second session on Wednesday with the market weighed down by
the harvest of a bumper U.S. crop amid abundant world supplies.
    Wheat ticked higher on short-covering ahead of a key U.S.
government report on Friday expected to show lower production
while soybeans were under pressure.
    The most-active corn contract on the Chicago Board Of Trade
 gave up 0.4 percent to $3.51 a bushel by 0248 GMT, having
closed down by a similar amount in the previous session.    
    Wheat rose 0.2 percent to $4.54-1/2 a bushel, having
closed little changed on Tuesday and soybeans eased 0.1
percent to $9.63 a bushel, having closed down 0.8 percent on
Tuesday.
    "It is not just expectations of good yields for the U.S.
corn crop, farmers are selling, which is adding pressure on
prices," said Ole Houe, an analyst with brokerage IKON
Commodities in Sydney.
    "Farmers don't sell sometimes when prices are low."
    The U.S. Department of Agriculture is due to issue its
quarterly stocks report on Friday. Analysts expect U.S. corn
stocks as of Sept. 1 to be pegged at 2.353 billion bushels,
which would be the largest Sept. 1 stocks since 1988, if
realized.
    Analysts surveyed by Reuters expect the government to lower
its estimate of U.S. 2017 spring wheat and all-wheat production.

    The USDA's weekly crop progress report showed the U.S.
soybean harvest was 10 percent complete as of Sunday, while 11
percent of the U.S. corn crop had been harvested.

    The progress figures fell below average trade estimates in a
Reuters poll, but dry weather was forecast for this week in most
of the U.S. Midwest, which should speed fieldwork.
    The soybean market is facing pressure after the U.S.
Environmental Protection Agency said it was seeking comment on a
proposal to reduce biodiesel blending requirements into the
domestic fuel supply. Soybean oil is the primary feedstock for
biodiesel fuel in the United States.
    Commodity funds were net sellers of CBOT soybean and grain
futures contracts on Tuesday, traders said.
    
 Grains prices at  0248 GMT
 
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  454.50  0.75    +0.17%   +0.11%       441.05  74
 CBOT corn   351.00  -1.25   -0.35%   -0.78%       355.16  54
 CBOT soy    963.00  -0.50   -0.05%   -0.85%       954.91  48
 CBOT rice   11.93   -$0.04  -0.33%   -3.52%       $12.64  25
 WTI crude   52.11   $0.23   +0.44%   -0.21%       $48.72  75
 Currencies                                                
 Euro/dlr    $1.179  $0.000  -0.03%   -0.50%               
 USD/AUD     0.7877  -0.001  -0.11%   -0.72%               
 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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