October 11, 2017 / 3:31 AM / 10 days ago

GRAINS-Corn prices ease for third day on weak demand, ample supply

    * Corn eases on lower-than-expected export inspections
    * Losses in soybeans checked by lower Brazilian output

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 11 (Reuters) - Chicago corn futures slid for
a third session on Wednesday, with plentiful supply and slow
demand for U.S. shipments weighing on the market.
    Soybeans also ticked lower, although expectations of lower
production in Brazil and strong demand for cargoes from the
United States put a floor under prices. 
    "Slowing U.S. corn exports is a strong factor for price
direction," said Phin Ziebell, agribusiness economist at
National Australia Bank. "And how do you get a rally going when
you have such a large supply?"
    The Chicago Board of Trade most-active corn contract
gave up 0.3 percent to $3.48-1/4 a bushel by 0256 GMT, wheat
 slid 0.2 percent to $4.34-1/2 a bushel and soybeans
lost 0.1 percent to $9.65-1/4 a bushel. 
    The U.S. Department of Agriculture (USDA) reported export
inspections of corn and wheat in the latest week at below
expectations, reflecting sluggish overseas demand for both
grains. 
    Inspections for U.S. soybeans, though, were at more than 1.4
million tonnes, topping a range of trade estimates. 
    The U.S. soybean harvest was 36 percent complete, behind a
five-year average of 43 percent and an average of trade
expectations for 38 percent, the farm department said after the
market closed on Tuesday. 
    A decline in production in Brazil is also underpinning
soybean prices. Brazilian statistics agency Conab forecast the
country's 2017-18 soybean crop at between 106 million and 108.2
million tonnes, down from the 2016-17 crop of 114 million
tonnes.     
    The U.S. corn harvest was 22 percent complete, compared with
a five-year average of 37 percent and an average trade estimate
of 27 percent. In Iowa, the top U.S. corn producer, the corn
harvest was 8 percent done, lagging the state's five-year
average of 28 percent. 
    The U.S. wheat market, meanwhile, is being pressured by
stiff competition from the Black Sea region. Egypt's state buyer
said it bought 170,000 tonnes of Russian wheat in a purchasing
tender where no U.S. wheat was offered.
    The USDA is scheduled to release its October supply-demand
reports, including updated estimates of U.S. and global crop
production on Thursday. 
    Commodity funds were net sellers of Chicago Board of Trade
soybean, corn, soyoil and wheat futures contracts on Tuesday and
net even in soymeal, traders said.

 Grains prices at  0256 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  434.50  -0.75   -0.17%   -2.03%       443.63  36
 CBOT corn   348.25  -1.00   -0.29%   -0.50%       352.53  42
 CBOT soy    965.25  -0.75   -0.08%   -0.72%       962.69  52
 CBOT rice   12.12   $0.10   +0.83%   +1.98%       $12.45  54
 WTI crude   51.03   $0.11   +0.22%   +2.92%       $49.78  57
 Currencies                                                
 Euro/dlr    $1.180  $0.000  -0.03%   +0.54%               
 USD/AUD     0.7780  0.000   +0.05%   +0.36%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford and Tom
Hogue)
  

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