June 4, 2019 / 7:44 AM / 3 months ago

GRAINS-Corn jumps 1.6% as U.S. report shows below-average planting pace

    * Corn up 1.6% after closing lower for the previous two sessions
    * U.S. corn planting 67% complete, behind average pace of 96%
    * But ample U.S., world reserves to keep lid on corn prices

 (Adds China's Dalian soymeal prices)
    By Naveen Thukral
    SINGAPORE, June 4 (Reuters) - Chicago corn futures rose on Tuesday, climbing back near last
week's three-year high after the U.S. Department of Agriculture reported that planting was well
behind the average pace for this time of year.
    Soybeans gained 1.1%, up for a second session, while wheat slid around half a percent. 
    The most-active corn contract on the Chicago Board of Trade was up 1.6% at $4.31 a
bushel, as of 0726 GMT, having closed the previous session 0.6% weaker.
    The market last week climbed to its highest since 2016 at $4.38 a bushel.
    Wet weather continued to plague U.S. farmers last week, especially in the Eastern Corn Belt, as
planting progress for corn and soybeans likely failed to advance as much as needed given the
already slow pace. The Crop Watch growers in Indiana and Ohio did not report that much progress had
been made.
    The climb in prices came after the USDA said U.S. corn planting was 67% complete, as of Sunday,
behind market estimates and well below the average pace of 96% at this time of year.
    Analysts had expected the USDA to peg planting at between 68% and 76% complete.
    "Think we are comfortable that acres lost in the U.S. will be 5-10 million acres, which will
mean a loss of 20-40 million tonnes from the projected crop," said Ole Houe, director of advisory
services at brokerage IKON Commodities.
    "But we ... started the year with 62 million tonnes in stocks - well above the 10-year average
level of 40 million tonnes."
    Wheat was down 0.4% at $5.17-3/4 a bushel, after earlier marking its highest since Feb. 6
at $5.29 a bushel. Soybeans climbed 1.1% at $8.88-3/4 a bushel, having closed 0.1% higher on
Monday.
    The USDA said 39% of the U.S. soybean crop was planted, at the low-end of market estimates.
    In China, Dalian soybean futures rose 1% and soymeal prices gained 2.1%,
tracking gains in U.S. markets. 
    
 Grains prices at 0726 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  517.75  -2.00   -0.38%   +0.63%       458.25  69
 CBOT corn   431.00  6.75    +1.59%   -1.20%       379.82  75
 CBOT soy    888.75  9.75    +1.11%   -0.03%       846.13  72
 CBOT rice   11.70   $0.00   +0.00%   +0.30%       $11.01  73
 WTI crude   53.18   -$0.07  -0.13%   -0.60%       $61.12  
 Currencies                                                
 Euro/dlr    $1.127  $0.010  +0.93%   +1.27%               
 USD/AUD     0.6985  0.005   +0.68%   +1.07%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, additional reporting by Colin Packham in SYDNEY; Editing by Joseph
Radford and Sherry Jacob-Phillips)
  
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