September 18, 2019 / 1:06 AM / a month ago

GRAINS-Corn rises, gains capped by oil weakness and crop friendly weather outlook

    SYDNEY, Sept 18 (Reuters) - U.S. corn futures firmed on
Wednesday, rebounding from losses of more than 1.5% in the
previous session, though gains were checked by weaker oil prices
and forecasts for crop friendly weather across a key North
American growing region.
         
    FUNDAMENTALS  
    * The most active corn futures on the Chicago Board Of Trade
 were up 0.5% at $3.69-3/4 a bushel, as of 0040 GMT, having
closed down 1.6% on Tuesday. 
    * The most active soybean futures were up 0.1% at
$8.94-1/2 a bushel, having closed down 0.7% on Tuesday.
    * The most active wheat futures were up 0.2% at $4.85
a bushel, having closed down 0.9% in the previous session.
    * Corn and soybean crops have been lagging their normal pace
of development after rain-delayed planting this spring, and the
warm weather was seen boosting crop maturity.
    * The U.S. Department of Agriculture (USDA) on Monday said
55% of U.S. corn was in good-to-excellent shape, above analyst
expectations of 54%. The harvest is also underway.
    * Corn had also rallied on the strength of oil, which
climbed after attacks on Saudi Arabia. Traders positioned as a
result on  expectations of increased ethanol demand.
    * Soybean crop conditions slipped to 54% good-to-excellent,
in line with expectations.
    * The USDA on Tuesday said private exporters reported the
sale of 260,000 tonnes of soybeans to China. It was the third
daily soy sales announcement in a row involving the world's top
importer, with total sales reaching 720,000 tonnes.
    * News that African swine fever was found in South Korea
also rattled grain markets amid worries that a broader spread of
the deadly disease could dent feed grain demand from the major
importer.
         
    MARKET NEWS  
    * The U.S. dollar fell on Tuesday in range-bound trading on
the eve of an expected interest rate cut by the Federal Reserve,
weakened by a fall in oil prices and a stronger euro.  
    * Oil prices extended their losses from the previous session
on Wednesday, after Saudi Arabia's energy minister said the
Kingdom will restore lost oil production by the end of the
month.  
    * Wall Street ended higher on Tuesday as the impact of
weekend attacks on Saudi Arabia's biggest oil refinery faded and
investors awaited a widely expected Fed interest rate cut on
Wednesday.  
    
    DATA/EVENTS AHEAD (GMT)
    0830  UK      CPI YY                 Aug
    0900  EU      HICP Final MM          Aug
    0900  EU      HICP Final YY          Aug
    1230  US      Housing Starts Number  Aug
    1300  Russia  Unemployment Rate      Aug
    1800  US      U.S. Federal Reserve's Federal Open Market
        
 Grains prices at  0040 GMT
 Contract       Last  Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat   485.00    0.75   +0.15%       -0.77%  477.41     58
 CBOT corn    369.75    1.75   +0.48%       -1.14%  373.24     61
 CBOT soy     894.50    0.75   +0.08%       -0.61%  874.77     70
 CBOT rice     12.25  -$0.03   -0.24%       +0.25%  $11.78     84
 WTI crude     58.96  -$0.38   -0.64%       -6.26%  $55.79     57
 Currencies                                                      
 Euro/dlr     $1.107  $0.000   -0.01%       +0.64%               
 USD/AUD      0.6856  -0.001   -0.12%       -0.12%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
    

 (Reporting by Colin Packham; Editing by Aditya Soni)
  
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