August 29, 2019 / 3:23 AM / 22 days ago

GRAINS-Corn rises to 1-week high on weather concerns, wheat under supply pressure

    * Corn up for 2nd session, climbs to highest since Aug. 22
    * Wheat unmoved after closing lower, ample world supplies
weigh

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Aug 29 (Reuters) - Chicago corn futures rose for
a second session on Thursday with the market climbing to a
one-week high, underpinned by concerns over frost-damage to this
year's late planted crop in the United States.
    Wheat was largely unchanged after closing lower in the last
session as prices were pressured by abundant world supplies. 
    The most-active corn contract on the Chicago Board Of Trade
(CBOT) was up 0.6% at $3.73-1/4 a bushel by 0252 GMT,
having gained 1.3% in the previous session.
    Wheat was up 0.05% at $4.75-1/2 a bushel, having
closed down 0.3% on Wednesday and soybeans were up 0.2% at
$8.67-1/2 a bushel, having firmed 0.8% on Wednesday.
    U.S. weather forecasts have stoked fears of frost damage
over the next six weeks.
    "There is a bit of support for corn today and we think the
market is trying to build some weather risk premium," said Ole
Houe, director of advisory services at brokerage IKON
Commodities.
    "We think weather does need to add a bit of risk back in
again although frost rarely turns out as bad as feared."
    The corn market dropped to its lowest in more than three
months on Wednesday as the U.S. crop has been progressing well
after floods resulted in record planting delays.
    Agricultural markets are eyeing developments in the trade
war between the United States and China, the world's biggest
importer of soybeans. China slashed purchases from the United
States after imposing retaliatory tariffs on imports of American
soy last year, in response to U.S. duties on Chinese goods.
    The U.S. Trade Representative's office on Wednesday
reaffirmed President Donald Trump's plans to impose an
additional 5% tariff on a list of $300 billion of Chinese
imports starting on Sept. 1 and Dec. 15.
    The wheat market faces headwinds from abundant world
supplies.
    France will need to export 20.1 million tonnes of soft wheat
this season after harvesting its second-largest crop in history,
French consultancy Agritel said on Wednesday.
    France, the European Union's largest wheat producer and
exporter, has only reached that level of exports three times
before.
    Commodity funds were net buyers of CBOT corn, soybean,
soymeal and soyoil futures contracts on Wednesday and net
sellers of wheat futures, traders said.              
    
 Grains prices at 0252 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  475.50  0.25     +0.05%   +0.05%       489.28  47
 CBOT corn   373.25  2.25     +0.61%   +1.36%       400.17  40
 CBOT soy    867.50  1.75     +0.20%   +0.03%       881.76  47
 CBOT rice   11.65   $0.00    +0.00%   +1.04%       $11.86  57
 WTI crude   55.61   -$0.17   -0.30%   +3.67%       $55.34  
 Currencies                                                 
 Euro/dlr    $1.108  -$0.001  -0.08%   -0.17%               
 USD/AUD     0.6726  -0.002   -0.37%   -0.71%               
 Most active contracts
 Wheat,
   corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI
   14, exponential
 
 (Reporting by Naveen Thukral)
  
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