October 12, 2018 / 3:22 AM / 6 months ago

GRAINS-Corn set for 2nd week of gains on lower U.S. output forecast

    * Corn rises as USDA makes surprise cut in U.S. output
    * Chicago wheat rises on expectations of Russian export

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Oct 12 (Reuters) - Chicago corn futures rose
further on Friday with the market on track for its second week
of gains as a surprise cut in U.S. output forecast underpinned
the market.
    Wheat bounced back on expectations that Russia, the world's
biggest supplier, will reduce grain exports.
    The most-active corn contract on the Chicago Board Of Trade
 was up 0.4 percent at $3.70-3/4 a bushel by 0259 GMT,
after hitting its highest since Aug. 22 at $3.73 a bushel on
    Corn is up 0.7 percent for the week, its second straight
weekly gain. Soybeans gained 0.7 percent to $8.64-1/2 a
bushel and are down half a percent this week.
    "The USDA cut their U.S. production and inventory estimates.
 The corn futures market liked that and promptly rallied," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia. 
    "And the heavy surge in trading volumes at the time
suggested at least some buying by investors."
    The U.S. Department of Agriculture surprisingly trimmed its
forecasts for both domestic corn and soybean production on
Thursday, with the soy cut stemming from a reduction in acres
while the corn harvest will be lower due to
smaller-than-expected yields.
    The corn crop was seen at 14.778 billion bushels, based on
an average record yield of 180.7 bushels per acre, the
government said in its monthly supply and demand report. Soybean
production was pegged at 4.690 billion bushels, with yields
averaging a record 53.1 bushels per acre.
    In September, the agency had forecast a corn crop of 14.827
billion bushels and a soybean crop of 4.693 billion bushels.
    China, the world's top soybean buyer, brought 8.01 million
tonnes of the oilseed in September, down from 9.15 million
tonnes in August and below last year's 8.11 million tonnes,
according to Reuters calculations based on data released by the
General Administration of Customs on Friday.
    Wheat added 0.5 percent to $5.10-3/4 a bushel but the
market is facing a loss of 2 percent this week. 
    The market expects that a smaller wheat harvest in Russia
and rapid pace of exports will cause shipments to tail off in
the months ahead.
    Commodity funds were net buyers of Chicago Board of Trade
corn, soybean, soymeal and soyoil futures contracts on Thursday
and net sellers of wheat, traders said.
 Grains prices at  0259 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  510.75  2.75    +0.54%   +0.05%       516.65  44
 CBOT corn   370.75  1.50    +0.41%   +2.21%       361.43  62
 CBOT soy    864.50  6.25    +0.73%   +1.44%       847.11  58
 CBOT rice   10.69   $0.00   +0.00%   -2.29%       $10.45  58
 WTI crude   71.23   $0.26   +0.37%   -2.65%       $71.39  #N/A Access Denied: User req to PE(6319)
 Euro/dlr    $1.160  $0.001  +0.09%   +0.75%               
 USD/AUD     0.7121  0.000   -0.03%   +0.86%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral; Editing by Sunil Nair)
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