September 4, 2019 / 4:23 AM / 3 months ago

GRAINS-Corn rebounds from 3-1/2-month low, soybeans struggle on demand woes

    * Corn firms on bargain buying 
    * Soybean prices unmoved as U.S.-China trade war curbs demand

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 4 (Reuters) - Chicago corn futures ticked higher on Wednesday, as the market
took a breather after dropping to its weakest since mid-May in the previous session amid hopes of a
bumper harvest.    
    Soybeans were largely unchanged as the market faced headwinds from a lack of demand amid the
U.S.-China trade war, while wheat firmed after having lost ground in the past four sessions.
    The most-active corn contract on the Chicago Board Of Trade     was up 0.3% at $3.62 a
bushel, as of 0356 GMT, having closed down 2.4% in the previous session when prices hit a May 14
low of $3.60-1/2 a bushel.
    Soybeans were down 0.03% at $8.68-1/4 a bushel and wheat added 0.7% to $4.56-1/2 a
bushel.
    "On the global supply front we have ample supplies of wheat and weather is proving to be pretty
decent for corn in the United States," said Ole Houe, director of advisory services at brokerage
IKON Commodities in Sydney.
    "And it looks like the export pace is slow and the market has started a race to the bottom that
it had been avoided so far."
    U.S. Department of Agriculture rated 58% of the U.S. corn crop in good-to-excellent condition,
up from 57% the previous week and in line with trade expectations. The USDA said 6% of the crop was
mature, behind the five-year average of 13%. 
    At least 55% of the soybean crop is in good-to-excellent condition, the USDA said, slightly
behind market expectations.
    The U.S. Crop Watch producers have been mostly pleased with this summer's weather as corn and
soybean yield expectations are higher than they were post-planting, but all eight locations report
that warmth is needed to push crops toward maturity, wrote Karen Braun, a market analyst for
Reuters.
    The USDA said 55% of the U.S. spring wheat crop has been harvested, behind analysts' forecasts.
    A lack of demand is dragging global soybean prices lower, which could result in lower growth in
planting.
    The area in Brazil to be planted with soybeans in the 2019-20 season, which starts this month,
will grow by the slowest pace in 13 years as a global trade war and swine fever in China cloud the
outlook for farmers, according to analysts at AgRural.
    The agribusiness consultancy expects Brazil's planted soy area to expand just 1.1% to 36.3
million hectares, well below the average annual growth of 5.2% over the past decade.
    The wheat market is being weighed down on prospects for plentiful global stockpiles.


 Grains prices at 0356 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  456.50  3.00    +0.66%   -1.30%       484.16  24
 CBOT corn   362.00  1.00    +0.28%   -2.10%       391.43  28
 CBOT soy    868.25  -0.25   -0.03%   -0.09%       876.58  48
 CBOT rice   11.99   $0.01   +0.08%   +0.25%       $11.82  68
 WTI crude   54.14   $0.20   +0.37%   -1.74%       $55.21  
 Currencies                                                
 Euro/dlr    $1.097  $0.000  +0.02%   +0.07%               
 USD/AUD     0.6779  0.002   +0.33%   +0.98%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
  
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