September 5, 2019 / 4:30 AM / 12 days ago

GRAINS-Corn snaps 3-day losing streak; U.S. weather forecast caps gains

    * Chicago corn futures recover from near 4-month low
    * Expectations of crop-friendly weather in Sept caps gains

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 5 (Reuters) - Chicago corn futures edged
higher on Thursday, as the market recovered from its lowest in
almost four months on bargain buying, but forecasts of
near-perfect weather across the U.S. Midwest capped gains.
    Bargain hunting by investors also propped up wheat, which
rose for a second session, while soybeans were underpinned by
news of fresh U.S. exports to Mexico. 
    The most-active corn contract on the Chicago Board Of Trade 
 was up 0.4% at $3.60 a bushel, as of 0342 GMT, having
closed down 0.7% in the previous session when prices hit a May
13 low of $3.56-1/2 a bushel.
    Wheat rose 0.1% to $4.61 a bushel, having rallied 1.6%
on Wednesday and soybeans gained 0.1% at $8.76-1/4 a
bushel, having firmed 0.8% on Wednesday.
    "To everyone's surprise the U.S. corn crop is doing fine as
conditions are holding out very well," said one Singapore-based
feed grains trader. "But we must be aware that the crop is not
in silos yet."
    U.S. Department of Agriculture late Tuesday rated 58% of the
U.S. corn crop in good-to-excellent condition, up from 57% the
previous week, in line with trade expectations.

    The crop's development is behind normal following widespread
spring planting delays, but forecasts call for seasonal
temperatures throughout September that should prolong the
Midwest growing season, raising the odds that crops will have
time to mature.
    Commodity brokerage INTL FCStone raised its
estimate of the average U.S. 2019 corn yield to 168.4 bushels
per acre, from 167.4 bushels in its previous monthly report
released on Aug. 1.
    There could be an impact on next year's supply of corn on
expectations of lower planting in Argentina, the world's third
biggest exporter.
    Argentine farmers, anxious about an increasingly murky
political outlook and economic turmoil, are turning towards soy
over more expensive corn to cut costs, a shift that could impact
next season's harvest.
    Farmers said a volatile economic situation in Argentina and
the likelihood of a new administration at the end of the year,
after President Mauricio Macri was hammered in primary
elections, meant soybeans looked a less risky bet than corn.
    Soybean futures drew support from USDA's confirmation that
private exporters sold 451,766 tonnes of U.S. soybeans to
Mexico.
    Commodity funds were net sellers of CBOT corn futures
contracts on Wednesday and net buyers of soybean, wheat and
soymeal futures, traders said.              
    
 Grains prices at 0342 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  461.00  0.25    +0.05%   -0.32%       484.31  39
 CBOT corn   360.00  1.50    +0.42%   -2.64%       391.37  27
 CBOT soy    876.25  0.75    +0.09%   +0.83%       876.85  55
 CBOT rice   11.96   -$0.02  -0.21%   +0.04%       $11.82  69
 WTI crude   56.24   -$0.02  -0.04%   +4.26%       $55.29  
 Currencies                                                
 Euro/dlr    $1.103  $0.005  +0.48%   +0.54%               
 USD/AUD     0.6819  0.006   +0.92%   +1.58%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; 
Editing by Rashmi Aich)
  
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