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GRAINS-Corn hits contract low on supply pressure, wheat up for 2nd day
November 29, 2017 / 1:41 AM / 13 days ago

GRAINS-Corn hits contract low on supply pressure, wheat up for 2nd day

    SINGAPORE, Nov 29 (Reuters) - Chicago December corn futures
 were little changed on Wednesday after hitting a contract
low earlier in the session, weighed down by plentiful world
supplies and lacklustre demand.
    Wheat rose for a second session on short-covering
although record global supplies kept a lid on the market.
    
    FUNDAMENTALS
    * Corn is coming under pressure as a bumper U.S. harvest
added to a global supply glut, while weather in South America
for the 2018 crop looks benign for the moment.
    * The U.S. Department of Agriculture late Monday said the
U.S. corn harvest was 95 percent complete.
    * U.S. farmers are likely to plant a record amount of land
with soybeans in 2018 and will also boost the area devoted to
most other major crops, the U.S. Agriculture Department said on
Tuesday.
    * If the forecasts are borne out, then another year of
bumper supply could prolong a global glut of grains that has
kept prices of soybean and corn depressed for years.
    * The USDA expects soybean plantings to rise to 91.0 million
acres in 2018/19, topping the record high set in 2017/18 at 90.2
million. But it forecast 2018/19 soybean ending stocks
tightening to 376 million bushels, from 425 million at the end
of 2017/18.
    * The USDA said U.S. corn stocks at the end of the 2018/19
marketing year, on Aug. 31, 2019, would grow to 2.607 billion
bushels, from 2.487 billion at the end of 2017/18.
    * Underscoring the challenging export scenario for U.S.
wheat, Egypt's main state grain buyer said it bought 120,000
tonnes of Russian wheat in an international purchase tender. No
U.S. wheat was offered.
    * China has bought around 10 to 12 cargoes of mainly U.S.
corn in the past month and is set to step up purchases as a
record gap between domestic and international prices encourages
buyers to seek out cheap imports.
    * Commodity funds were net sellers of CBOT corn, soybean,
soymeal and wheat futures contracts on Tuesday and net buyers of
soyoil futures, traders said.
    
    MARKET NEWS
    * Asian shares rose and the dollar held firm on Wednesday
after Wall Street shot to record peaks amid signs of progress on
U.S. tax cuts, upbeat economic data and bank-friendly comments
from the nominee to head the Federal Reserve.
    
    DATA AHEAD (GMT)
0745  France               Consumer spending     Oct
1000  Euro zone            Business climate      Nov
1300  Germany              Consumer prices       Nov
1330  U.S.                 GDP 2nd estimate      Q3
1500  U.S.                 Pending homes sales   Oct
1900  U.S. Federal Reserve Beige Book on economic condition
    
 Grains prices at  0124 GMT
 Contract    Last    Change  Pct chg               MA 30   RSI
 CBOT wheat  430.00  0.75    +0.17%                430.00  32
 CBOT corn   336.25  0.00    +0.00%                336.25  31
 CBOT soy    993.00  0.00    +0.00%                993.00  58
 CBOT rice   12.31   $0.00   +0.00%                $12.31  69
 WTI crude   57.70   -$0.29  -0.50%                $57.70  60
 Currencies                                                
 Euro/dlr    $1.184  $1.184                                
 USD/AUD     0.7595  0.760                                 
 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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