June 5, 2018 / 4:02 AM / 14 days ago

GRAINS-Corn recovers from 7-week low, U.S. crop outlook caps gain

    * Corn ticks up after dropping to weakest since April 20
    * Wheat up after 2 days of decline; market eyes U.S. harvest
    * Soybeans drop to lowest since May 18

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 5 (Reuters) - Chicago corn ticked higher on
Tuesday after dropping to a near seven-week low earlier in the
session on pressure from crop-friendly U.S. weather which is
boosting expectations of a bumper harvest.
    Wheat bounced back from two straight sessions of losses,
although the market is likely to be weighed down by U.S. harvest
pressure. Soybeans slid to their lowest in nearly three weeks.
    The most-active corn contract on the Chicago Board Of Trade
 was up 0.3 percent at $3.82 a bushel by 0336 GMT after
hitting a low of $3.80 a bushel, the weakest since April 20. 
    Corn closed down 2.7 percent in the previous session on
favourable U.S. crop weather and worries about trade disputes.
    Wheat was up 0.7 percent at $5.08-3/4 a bushel after
closing down 3.4 percent in the previous session and soybeans
 gave up 0.2 percent to $10.00 a bushel, the lowest since
May 18.
    "The corn market has recovered a little bit but it is mainly
bargain-buying," said Phin Ziebell, an agribusiness economist at
National Australia Bank. "U.S. weather looks good for the crop
and any rally in this situation is unlikely."
    After market hours on Monday, the U.S. Department of
Agriculture rated 78 percent of the corn as good to excellent,
down from 79 percent a week earlier, but still among the highest
U.S. corn ratings for this time of year in records dating to the
1980s.
    The agency rated 75 percent of the U.S. soybean crop in good
to excellent condition, above an average of analyst expectations
for 74 percent.
    The USDA said the U.S. winter wheat harvest was 5 percent
complete as of Sunday, lagging the average analyst expectation
of 8 percent.
    Worries about U.S. trade relations with China, the world's
top soybean importer, continue to loom over the market.
    Paraguay is forecast to export more soybeans than
neighbouring grains powerhouse Argentina for the first time this
year as growers in the smaller country push to increase output
and fill the supply gap left by a drought on the Argentine
Pampas.
    Commodity funds were net sellers of Chicago Board of Trade
corn, wheat, soybean, soymeal and soyoil futures contracts on
Monday, traders said.
    Trade estimates of net fund selling in corn ranged from
21,000 to 40,000 contracts, in wheat from 7,000 to 20,000
contracts and in soybeans from 6,000 to 20,000 contracts.

    
 Grains prices at  0336 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  508.75   3.50    +0.69%   -3.33%       512.09   43
 CBOT corn   382.00   1.25    +0.33%   -3.05%       399.39   27
 CBOT soy    1000.00  -1.75   -0.17%   -1.82%       1026.78  33
 CBOT rice   11.24    $0.02   +0.18%   -2.81%       $12.45   18
 WTI crude   65.11    $0.36   +0.56%   -1.06%       $69.20   27
 Currencies                                                  
 Euro/dlr    $1.169   $0.000  +0.03%   +0.27%                
 USD/AUD     0.7637   0.007   +0.93%   +0.82%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  
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