June 25, 2020 / 1:49 AM / 9 days ago

GRAINS-Corn falls to near 3-week low on ample supplies, weak demand

SYDNEY, June 25 (Reuters) - U.S. corn futures fell for a fourth straight session on Thursday, as ample global stocks and expectations of depressed demand pushed prices towards a near three-week low.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were down 0.2% at $3.23-3/4 a bushel by 0137 GMT, having closed down 0.2% in the previous session.

* Corn hit its lowest since June 3 of $3.21-1/4 a bushel on Tuesday.

* The most active soybean futures were down 0.1% at $8.69-1/2 a bushel, having closed down 0.5% on Wednesday.

* The most active wheat futures were down 0.3% at$3.84-1/4 a bushel, having closed down 1.1% on Wednesday.

* Corn is under pressure from weak oil prices, which will depress demand for ethanol.

* Wet, mild weather expected to aid corn and soybean crops in the United States.

* The U.S. Energy Information Administration on Wednesday reported higher week-on-week ethanol production for an eighth straight week and lower stocks for a ninth week.

* Traders were also beginning to square positions ahead of next week’s U.S. Department of Agriculture quarterly stocks and planted acreage reports.

MARKET NEWS

* The dollar held firm on Thursday as an increase in coronavirus cases in the United States undermined hopes for a quick turnaround in the pandemic-hit economy and prompted traders to cuts bets on riskier currencies.

* Oil prices tumbled over 5% on Wednesday after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.

* Wall Street’s three major indexes on Wednesday suffered their biggest daily percentage drop in almost two weeks as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage.

Reporting by Colin Packham; Editing by Amy Caren Daniel

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