August 15, 2019 / 4:13 AM / a month ago

GRAINS-Corn rises after deep losses, U.S. rain forecasts cap gains

    * Corn firms after 3 days of losses, U.S. weather in focus
    * Chicago soybeans tick up after closing lower, wheat firms

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Aug 15 (Reuters) - Chicago corn rose for the
first time in four sessions on Thursday as bargain buying lifted
prices, but gains were limited on expectations of favourable
rains across the U.S. Midwest.
    Soybeans edged higher after closing lower, while wheat
firmed although ample supplies kept a lid on the market.
    Forecasts for some rain in key growing areas of the U.S.
Midwest in the coming weeks is adding pressure on the corn
market and bolstered the production view issued by the U.S.
Department of Agriculture on Monday.
    The Chicago Board of Trade most-active corn contract
rose 0.6% to $3.72-1/2 a bushel by 0334 GMT, soybeans
added 0.4% to $8.81-1/2 a bushel and wheat gained 0.5% to
$4.76 a bushel.
    Corn prices dropped to their lowest since mid-May on
Wednesday, having lost more than 11% in the last three sessions.
    The USDA surprise boost to its corn production forecast
continues to hang over the market.
    But analysts warned that U.S. corn crop is still vulnerable.
    "U.S. corn crops are still behind their usual development
cycle, so the chance of weather-crop mismatch is greater," said
Tobin Gorey, director of agricultural strategy, Commonwealth
Bank of Australia. 
    "Too hot for some phases and, later, too cool for other
phases can still have a material impact on yields."
    Analysts are expecting a USDA report later on Thursday to
show weekly export sales of soybeans between 150,000 tonnes and
700,000 tonnes. A week ago, soybean export sales totalled
419,914 tonnes.
    Wheat harvesting is coming to an end in the European Union's
top producing countries but repeated rains in recent weeks are
causing concerns about quality loss in some areas, experts said
on Wednesday.
    Harvesting is almost finished in France, Germany and Poland
but rains are interrupting work in Britain.
    German wheat exporters are seeking access to new markets
including China, Mexico and Indonesia, an industry association
said, following signals that Saudi Arabia is about to open up to
imports from Russia.
    Saudi Arabia has been Germany's biggest market for wheat
exports in recent years, but German firms face much tougher
competition after Saudi state grain buyer SAGO said last
Thursday that it will relax quality specifications for wheat
imports from its next tender.
    Commodity funds were net sellers of CBOT corn, soybean,
soymeal and soyoil futures contracts on Wednesday. They were net
buyers of wheat, traders said.              
    
 Grains prices at 0334 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  476.00  2.25    +0.47%   +0.85%       495.84  39
 CBOT corn   372.50  2.25    +0.61%   -1.06%       422.18  20
 CBOT soy    881.50  3.50    +0.40%   -0.84%       894.71  47
 CBOT rice   11.45   -$0.05  -0.43%   -0.04%       $11.78  40
 WTI crude   55.00   -$0.23  -0.42%   -3.68%       $56.39  
 Currencies                                                
 Euro/dlr    $1.114  $0.001  +0.04%   -0.23%               
 USD/AUD     0.6779  0.003   +0.47%   -0.31%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; editing by Uttaresh.V and
Gopakumar Warrier)
  
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