September 9, 2019 / 4:26 AM / a month ago

GRAINS-Corn rebounds from 4-month low; benign U.S. weather weighs

    * Corn rises, but not far from Friday's lowest since mid-May
    * Crop-friendly U.S. weather, lack of demand weigh on corn prices

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 9 (Reuters) - Chicago corn futures edged higher on Monday, with bargain buying
supporting prices after the market dropped to its weakest in almost four months in the previous
session on crop-friendly U.S. weather.
    Wheat eased for a second session, weighed down by abundant world supplies, while soybeans
gained after closing lower in the last two sessions.
    The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.4% at
$3.56-3/4 a bushel, as of 0405 GMT, having dropped to its lowest since May 13 at $3.53 a bushel.
    Soybeans were up 0.1% at $8.58-1/2 a bushel and wheat lost 0.1% to $4.63-1/4 a
bushel.
    "Prices are yielding to seasonal pressure," said Tobin Gorey, director of agricultural strategy
at Commonwealth Bank of Australia, referring CBOT corn futures. "The market seems to want to offer
challenge to that seasonal decline."
    There are forecasts of beneficial rains this week in portions of the U.S. grain belt, and no
sign of a cold spell that could shorten the growing season for this year's late-maturing corn and
soy crops, analysts said.
    Private analytics firm IEG Vantage, formerly known as Informa Economics IEG, raised its
forecast of the average U.S. 2019 corn yield to 169.6 bushels per acre (bpa), up from 167.8 bpa a
month ago and just above the U.S. Department of Agriculture's estimate of 169.5 bpa.
    There was additional pressure on the corn market stemming from dismal demand.
    U.S. Department of Agriculture reported export sales of U.S. corn in the latest week at 250,800
tonnes (old and new crop years combined), below a range of trade expectations for 500,000 tonnes to
900,000 tonnes.
    Strong demand is supporting soybeans. 
    The USDA reporting weekly soybean export sales at 857,900 tonnes (old and new crop years
combined), above trade expectations.
    China's soybean imports in August jumped 9.7% from the previous month to hit the highest level
in nearly one-and-half-years, customs data showed on Sunday, as some shipments booked earlier
cleared customs after a delay.
    Imports of 9.48 million tonnes were up in August from 8.64 million tonnes in July, and also
ahead of 9.15 million tonnes in August last year, according to data from the General Administration
of Customs.
    Large speculators increased their net short position in CBOT corn futures in the week ended
Sept. 3, regulatory data released on Friday showed.
    The Commodity Futures Trading Commission's weekly commitments of traders report also showed
that noncommercial traders, a category that includes hedge funds, increased their net short
position in CBOT wheat and trimmed their net short position in soybeans
    
 Grains prices at 0405 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  463.25  -0.50   -0.11%   -0.64%       480.27  44
 CBOT corn   356.75  1.25    +0.35%   -0.56%       384.26  20
 CBOT soy    858.50  0.75    +0.09%   -0.35%       872.45  38
 CBOT rice   11.96   -$0.01  -0.08%   -0.08%       $11.77  69
 WTI crude   57.12   $0.60   +1.06%   +1.46%       $55.34  
 Currencies                                                
 Euro/dlr    $1.102  $0.000  -0.03%   -0.08%               
 USD/AUD     0.6854  0.001   +0.12%   +0.60%               
 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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