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GRAINS-Corn hits 3-month high on LatAm crop concerns, short-covering
December 4, 2017 / 1:24 AM / in 13 days

GRAINS-Corn hits 3-month high on LatAm crop concerns, short-covering

    SINGAPORE, Dec 4 (Reuters) - Chicago corn climbed to its
highest since early September on Monday with concerns that dry
weather will hurt crop yields in Argentina underpinning the
market. 
    Soybeans rose for a second session to a one-week top while
wheat ticked higher, rising for four out of five sessions. 
    
    FUNDAMENTALS
    * Dry weather across Argentina's farms is supporting corn
and soybean prices. 
    * Parts of Argentina's soybean and corn belt received some
beneficial rains last week, but dry weather remains a concern
across several provinces.
    * Brazil's corn production will drop by almost 17 percent in
the 2017/18 crop cycle, consultancy Safras & Mercado said on
Friday, reflecting a reduction in estimated planted area and
lower prices for the grain.
    * Corn output will total 90.52 million tonnes compared with
a Safras estimate of 108.87 million tonnes for production in the
2016/17 crop season, the consultancy said.
    * Gains in corn and soybeans are likely to be capped by
expectations of increase in U.S. production next year.
    * U.S. farmers are likely to expand plantings of both corn
and soybeans while reducing wheat seedings for the upcoming
marketing year, the U.S. Agriculture Department said last week.

    * Large speculators trimmed their net short position in
Chicago Board of Trade corn futures in the week to Nov. 28,
regulatory data released on Friday showed. 
    * The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and switched to a net long
position in soybeans.
        
    MARKET NEWS
    * The U.S. dollar bounced to a two-week top on Monday as
traders celebrated the passage of a Senate tax bill over the
weekend, while stronger U.S. stock futures pointed to a merry
start for Asian shares.
    
    DATA AHEAD (GMT)
0930   Euro zone               Sentix index             Dec
1000   Euro zone               Producer prices          Oct
1445   U.S.                    ISM-New York index       Nov
1500   U.S.                    Factory orders           Oct
    
 Grains prices at  0112 GMT
 Contract    Last     Change  Pct chg               MA 30    RSI
 CBOT wheat  440.00   1.50    +0.34%                440.00   46
 CBOT corn   359.50   0.75    +0.21%                359.50   59
 CBOT soy    1002.25  8.00    +0.80%                1002.25  68
 CBOT rice   12.46    $0.00   +0.00%                $12.46   71
 WTI crude   58.15    -$0.21  -0.36%                $58.15   62
 Currencies                                                  
 Euro/dlr    $1.187   $1.187                                 
 USD/AUD     0.7592   0.759                                  
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; editing by Richard Pullin)
  

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