November 29, 2017 / 2:11 AM / a year ago

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

    * CBOT December corn hits contract low at $3.35-1/2 a bushel
    * Pressure from ample supplies, improved S.American weather

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Nov 29 (Reuters) - Chicago December corn futures
hit a contract low on Wednesday, 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.
    Corn is coming under pressure as a bumper U.S. harvest is
adding to a global supply glut, while the weather in South
America for the 2018 crop looks benign for the moment.
    The U.S. Department of Agriculture (USDA) late Monday said
the U.S. corn harvest was 95 percent complete.
    "Corn appears to be standing on the doorstep of a new season
low," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "The USDA have forecast an increase in production for next
year's season. This will add further pressure on this year's
export figures."
    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 USDA 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 Chicago Board of Trade December corn contract was
down 0.1 percent at $3.36 a bushel by 0143 GMT after earlier in
the session hitting a contract low of $3.35-1/2 a bushel.
    Wheat added 0.3 percent to $4.12 a bushel and soybeans
 gave up 0.1 percent to $9.92-1/2 a bushel.
    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.
    
 Grains prices at  0143 GMT
 Contract    Last    Change  Pct chg               MA 30   RSI
 CBOT wheat  430.00  0.75    +0.17%                430.00  32
 CBOT corn   336.00  -0.25   -0.07%                336.00  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   57.69   -$0.30  -0.52%                $57.69  60
 Currencies                                                
 Euro/dlr    $1.184  $1.184                                
 USD/AUD     0.7594  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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