October 7, 2019 / 3:53 AM / 12 days ago

GRAINS-Corn rises on U.S. crop concerns; wheat, soybeans up for 2nd session

    * Corn up ahead of USDA report, lower U.S. yields support
    * Chicago wheat, soybean futures gain for 2nd session

 (Adds details, quote)
    By Naveen Thukral
    Oct 7 (Reuters) - Chicago corn futures rose on Monday,
recouping some of the previous session's losses on expectations
of lower U.S. yields and tighter global supplies. 
    Soybeans and wheat rose for a second straight session ahead
of a U.S. Department of Agriculture (USDA) report on world
supplies due later this week.
    The most-active corn contract on the Chicago Board Of Trade 
   rose by 0.6% to $3.87 a bushel, as of 0325 GMT, after
closing down 1% in the previous session.
    Wheat added 0.6% at $4.93-1/4 a bushel, having closed
0.4% higher on Friday, and soybeans gained 0.2% at
$9.18-1/4 a bushel, having risen 0.5% in the previous session.
    "There are some concerns over the size of U.S. crop and the
latest stocks report has just tightened that global balance
sheet just a fraction," said Ole Houe, director of advisory
services at brokerage IKON Commodities in Sydney. "We typically
see prices rise."
    There are expectations of lower U.S. yields after rains and
flooding delayed this year's planting. 
    Private analytics firm IEG Vantage, formerly known as
Informa Economics IEG, on Friday lowered its forecast of the
average U.S. 2019 corn yield to 167.5 bushels per acre from
169.6 bushels a month ago, according to an IEG client note seen
by Reuters.
    IEG forecast the average U.S. 2019 soybean yield at 46.5
bushels per acre, down from 48.4 bushels last month. The firm
put soybean production at 3.513 billion bushels, down from 3.671
billion bushels previously.
    The market is waiting USDA's World Agricultural Supply and
Demand Estimates scheduled for release on Thursday at 1600 GMT.
    The Trump administration on Friday unveiled a plan to boost
U.S. biofuels consumption starting next year to help struggling
farmers, a move that cheered the agriculture industry but
triggered a backlash from Big Oil. 
    The plan would require an unspecified increase in the amount
of ethanol that oil refiners must add to their fuel in 2020, and
would also aim to remove further barriers to the sale of higher
ethanol blends of gasoline like E15, the Environmental
Protection Agency said in a statement.
    Soybean farmers in Brazil's largest growing state of Mato
Grosso have planted 6.65% of the estimated area so far for the
2019/2020 soy crop, below the 12.6% level seen at this time last
year due to scarce rainfall, state research institute Imea said
on Friday.
    Large speculators trimmed their net short position in CBOT
corn futures in the week to Oct. 1, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and soybeans.
    
 Grains prices at 0325 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  493.25  2.75    +0.56%   +0.92%       480.42  59
 CBOT corn   387.00  2.25    +0.58%   -0.45%       371.46  64
 CBOT soy    918.25  2.00    +0.22%   +0.71%       885.83  70
 CBOT rice   11.65   -$0.02  -0.13%   -0.60%       $11.97  31
 WTI crude   52.66   -$0.15  -0.28%   +0.40%       $55.99  
 Currencies                                                
 Euro/dlr    $1.098  $0.001  +0.05%   +0.16%               
 USD/AUD     0.6752  -0.002  -0.24%   +0.16%               
 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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