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GRAINS-Corn faces 2nd week of decline as USDA raises yield forecast
November 10, 2017 / 3:58 AM / 9 days ago

GRAINS-Corn faces 2nd week of decline as USDA raises yield forecast

    * Corn trades near one-year low, down 2 pct this week
    * Wheat set to finish week higher, while soybeans ease

 (Adds details, quotes)
    By Naveen Thukral
    Nov 10 (Reuters) - Chicago corn futures were set on Friday
for a second week of decline, with prices trading near a
one-year low as a U.S. government forecast of record yields
weighed on the market.
    Wheat was on pace to finish the week higher, while soybeans
were little changed after suffering in the previous session
their biggest daily loss in nearly three months. 
    The Chicago Board of Trade most-active corn contract
is down around 2 percent this week, marking on Thursday its
lowest since November 2016 at $3.40-3/4 a bushel. 
    Wheat is up 0.8 percent for the week, its biggest
weekly gain since mid-September. Soybeans are down 0.2
percent after climbing 1.2 percent last week.
    "We have surprisingly high U.S. corn yields, no one was
expecting this," said one India-based agricultural commodities
analyst of a U.S. crop report.
    "The idea is that if corn yields can be so high, the USDA
might increase soybean yields in its next report."
    The U.S. Department of Agriculture (USDA) raised its corn
crop forecast to 14.578 billion bushels, based on an average
yield of 175.4 bushels per acre (bpa), which, if realised, would
top a record set last year.
    The agency's 2.1 percent bump to its previous corn yield
forecast signals this year's bumper harvest may get even bigger,
as the government has in the past followed up late season
increases with further upward adjustments.
    The soybean crop was expected to hit a record 4.425 billion
bushels, on a yield of 49.5 bpa. 
    The USDA said corn export sales jumped last week to a
5-1/2-year high of more than 2.9 million tonnes, including 2.3
million for shipment in the current marketing year, topping
trade estimates.   
    For soybeans, slowing purchases by China remain a concern. 
    Brazil is expected to win a larger share of China's soybean
imports in coming months, hitting U.S. exporters during peak
marketing season for their most valuable farm product as the
world grapples with a fifth consecutive bumper crop.

    Commodity funds were net sellers of CBOT corn, soybean,
soymeal and soyoil futures contracts on Thursday and net buyers
of wheat, traders said.
    
 Grains prices at  0314 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  428.75  -0.25   -0.06%   +0.47%       432.61  47
 CBOT corn   341.50  0.00    +0.00%   -1.94%       348.68  26
 CBOT soy    984.75  -0.25   -0.03%   -1.38%       987.08  47
 CBOT rice   11.44   $0.00   +0.00%   -0.69%       $12.02  31
 WTI crude   57.04   -$0.13  -0.23%   +0.40%       $52.84  77
 Currencies                                                
 Euro/dlr    $1.165  $0.001  +0.07%   +0.47%               
 USD/AUD     0.7681  0.000   +0.04%   +0.08%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Tom Hogue)
  

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