July 19, 2019 / 3:54 AM / a month ago

GRAINS-Corn faces biggest weekly drop in 2 years on cooler U.S. weather

    * Corn firms after deep losses, set for weekly decline
    * Forecasts of more U.S. Midwest rains keep pressure on prices

 (Adds details, comments)
    By Naveen Thukral
    SINGAPORE, July 19 (Reuters) - Chicago corn futures ticked higher on Friday, but the market was
poised for its biggest weekly drop since June 2017 as cooler weather across the U.S. Midwest
boosted crop prospects.
    Wheat edged higher on bargain-buying after finishing lower for the last four sessions, with
gains were capped by harvest pressure around the northern hemisphere.
    The most-active corn contract on the Chicago Board Of Trade has declined by 5.9% this
week, the most since the week ended June 23, 2017. 
    Soybeans are down 3% for the week, giving up some of last week's gains, while wheat
has lost 5.1%, the most since early March. 
    "We are in weather market and there is going to be volatility until the harvest," said a
Singapore-based grains trader. 
    Last week, grain markets were underpinned by fears that U.S. crops could suffer from prolonged
hot and dry weather, but Midwest rains brought some relief on Thursday.
    The U.S. Department of Agriculture's (USDA) export data also showed Russia and Mexico cancelled
171,000 tonnes and 32,000 tonnes of soybeans, respectively, adding pressure on prices.
    Investors in the grains market are awaiting the USDA acreage report on Aug. 12 for price
direction.
    "The corn story is far from over," said Ole Houe, director of advisory services at brokerage
IKON Commodities. "The market still need to reach a consensus as to how many acres were lost due to
rains and flooding."
    Russian agriculture consultancy IKAR has lowered its forecast for the Russian grain harvest to
121.4 million tonnes, Interfax news agency reported.
    On July 3, IKAR forecast that the grain harvest would be 123.4 million tonnes.
    Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soybean, soymeal and
soyoil contracts on Thursday, traders said.
    
 Grains prices at 0331 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  496.50  3.00    +0.61%   -2.17%       522.24  36
 CBOT corn   432.00  2.25    +0.52%   -2.10%       443.09  43
 CBOT soy    903.25  4.25    +0.47%   -0.30%       911.41  48
 CBOT rice   11.83   -$0.06  -0.50%   +0.38%       $11.76  64
 WTI crude   56.25   $0.95   +1.72%   -0.93%       $56.51  
 Currencies                                                
 Euro/dlr    $1.126  $0.004  +0.37%   +0.49%               
 USD/AUD     0.7070  0.006   +0.87%   +0.83%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
  
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