June 13, 2019 / 2:12 AM / a month ago

GRAINS-Corn hits 1-week high as rains threaten to stall U.S. planting

    * Chicago corn climbs more than 1%, up for third session
    * Soybeans, wheat futures gain for 4th consecutive session
    * Forecasts of more U.S. rains threatening to halt planting

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, June 13 (Reuters) - Chicago corn rose 1.2% on Thursday to a one-week high, while
soybeans gained for a fourth consecutive session as forecasts of more rains in the U.S. Midwest
threatened to stall planting.
    Wheat jumped to its highest since early February with prices underpinned dry weather hurting
recently planted crop in Australia, typically the world's fourth-largest exporter.
    The most-active corn contract on the Chicago Board of Trade was up 1.2% at $4.35-1/4 a
bushel, as of 0149 GMT, near the session high of $4.36 a bushel - the highest since June 4.
    Soybeans added 0.3% to $8.80-1/2 a bushel, after closing 2.2% firmer on Wednesday and
wheat rose 0.5% to $5.29 a bushel, after climbing to its highest since Feb. 6 at $5.30-3/4 a
bushel.
    Corn and soybeans are drawing support particularly from forecasts for wet weather across the
U.S. Midwest, which threaten to stall planting.
    The U.S. Department of Agriculture (USDA) on Tuesday cut its corn yield projection in a monthly
report by 5.7% to 166 bushels, surprising analysts who had expected a smaller decline. 
    "With so much late planting this season, the tail on weather threats to this U.S. corn crop will
run well into the northern (hemisphere) autumn," said Tobin Gorey, director of agricultural
strategy, Commonwealth Bank of Australia.
    The USDA left its estimates for soybean production and yields unchanged from May. Adjustments to
the soybean crop outlook can be expected in the USDA's July report, the agency's chief economist
told Reuters on Wednesday.
    If conditions improve, farmers could switch acres to soybeans, which are typically planted after
corn. However, future rains mean more soybean plantings may be stalled, traders said.
    China's soymeal futures rose 2.6%, while rapemeal futures climbed more than
3%, largely tracking gains in the Chicago market.
    The wheat market is being buoyed by a third year of drought in Australia.
    Dry weather will persist across Australia until at least the end of September, the country's
weather bureau said on Thursday, in a forecast that threatens to further lower wheat production.

    There is just a 30% chance that Australia will record average rainfall between July 1 and Sept
30, Australia's Bureau of Meteorology said.
    Commodity funds were net buyers of CBOT corn, soybean, soymeal, soyoil and wheat futures
contracts on Wednesday, traders said.

 Grains prices at 0149 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  529.00  2.75     +0.52%   +4.24%       474.78  69
 CBOT corn   435.25  5.25     +1.22%   +4.69%       394.00  71
 CBOT soy    880.50  2.50     +0.28%   +2.56%       845.35  66
 CBOT rice   11.73   -$0.02   -0.13%   -0.38%       $11.28  54
 WTI crude   51.28   $0.14    +0.27%   -3.74%       $58.31  
 Currencies                                                 
 Euro/dlr    $1.129  -$0.004  -0.32%   -0.17%               
 USD/AUD     0.6921  -0.004   -0.56%   -0.57%               
 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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