January 10, 2020 / 4:17 AM / 8 days ago

GRAINS-Corn firms ahead of USDA report, wheat extends gains

    * Corn futures gain ground on expectations of lower U.S. output
    * U.S. wheat gains ground on rising world prices, lower planting

 (Recasts text, adds quote in paragraphs 6-7)
    By Naveen Thukral
    SINGAPORE, Jan 10 (Reuters) - Chicago corn rose on Friday, with prices underpinned by
prospects of a U.S. report showing lower production as adverse weather conditions across the
Midwest during the growing season in 2019 curbed yields. 
    Wheat gained more ground, supported by higher prices in rival exporting countries and
forecasts of reduced U.S. planting.
    The most-active Chicago Board Of Trade corn contract was up 0.2% at $3.84 a bushel, as
of 0340 GMT, soybeans gained 0.1% to $9.44 a bushel and wheat added 0.1% to $5.63 a
bushel.
    For the week so far, corn is down 0.6%, soybeans are up 0.3% and wheat is trading 1.5%
higher.
    Grain markets are looking ahead to Friday's U.S. Department of Agriculture (USDA) reports,
scheduled for release at 1700 GMT, which are expected to show smaller U.S. corn and soybean
harvests in 2019, lower grain stocks and a decline in winter wheat seedings in the United
States.
    "The USDA report might be a bit supporting for corn," said a Singapore-based feed grains
trader at an international trading company.
    "It is not just crop which is lower, we are hearing of quality issues. There is excess
moisture."
    U.S. corn and soybean crops suffered from adverse weather during the growing season in 2019.
    The soybean market was underpinned by easing tensions between the United States and Iran,
although abundant world supplies limited gains.
    Tensions between Washington and Tehran have risen since Trump ordered the U.S. drone killing
of a top Iranian general on Friday. Trump, however, has refrained from ordering more military
action and Iran's foreign minister said the strikes on Iraqi bases that house U.S. forces had
"concluded" Tehran's response.
    Brazilian consultancy Agroconsult boosted its soy crop estimate on Thursday to a
record-setting 124.3 million tonnes but trimmed its corn crop view.
    Grain traders are also awaiting more details on the Phase 1 U.S.-China trade deal due to be
signed next week. 
    However, large Chinese purchases of Brazilian soybeans and a pair of unexpected policy moves
by Beijing have dimmed U.S. hopes that China would double its imports of American farm products
this year.
    Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on
Thursday and net buyers of wheat and soyoil, traders said.
    
 Grains prices at 0340 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  563.00  0.75     +0.13%   +2.32%       541.24  68
 CBOT corn   384.00  0.75     +0.20%   -0.13%       383.17  46
 CBOT soy    944.00  0.50     +0.05%   +0.00%       922.84  57
 CBOT rice   13.25   -$0.03   -0.19%   +1.45%       $12.91  53
 WTI crude   59.44   -$0.12   -0.20%   -5.20%       $59.89  
 Currencies                                                 
 Euro/dlr    $1.111  -$0.004  -0.39%   -0.77%               
 USD/AUD     0.6867  0.000    -0.01%   -1.04%               
 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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