June 29, 2020 / 4:39 AM / 9 days ago

GRAINS-Corn firms on technicals, gains capped by strong U.S. harvest outlook

* Corn firms after dropping to six-week low last week

* Expectations of bumper U.S. harvest seen keeping lid on prices (Adds technicals chart, quote in paragraph 3, CFTC report)

By Naveen Thukral

SINGAPORE, June 29 (Reuters) - Chicago corn futures rose on Monday, with technicals supporting prices, although expectations of a bumper U.S. harvest limited gains.

Wheat edged higher while soybeans eased.

“There is scope for prices to go down further if forecasts of U.S. production keeps improving,” a Singapore-based trader said. “We are already hearing of high yields this year.”

The most-active corn contract on the Chicago Board Of Trade (CBOT) rose 0.3% to $3.18 a bushel by 0417 GMT, having dropped to a May 12 low of $3.15 a bushel last week.

Wheat inched up 0.1% to $4.76-1/4 a bushel, while soybeans lost 0.3% to $8.62-3/4 a bushel.

CBOT July corn may bounce into a range of $3.20-1/2 to $3.22 per bushel, as it has found a strong support at $3.13-1/4, according to Wang Tao, a Reuters analyst for commodities technicals.

The U.S. Department of Agriculture will on Tuesday issue its latest U.S. acreage and quarterly grain stocks reports.

Analysts expect the USDA reports to show plentiful supplies of grain and a modest shift in U.S. plantings from corn to soybeans.

Forecasters expect favourable rains across the heart of the U.S. Midwest farm belt through early next week, which would limit the stress on crops when above-normal temperatures move into the region around midweek.

Large speculators increased their net short position in CBOT corn futures in the week to June 23, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.

Reporting by Naveen Thukral; Editing by Devika Syamnath

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