September 12, 2019 / 4:01 AM / 8 days ago

GRAINS-Corn, soybean futures firm ahead of USDA supply-demand report

    * Chicago corn, soybeans rise after closing lower on
Wednesday
    * Near-perfect weather across U.S. Midwest caps gains
    * Wheat gains, price likely to remain under supply pressure

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 12 (Reuters) - Chicago corn and soybean
futures gained ground on Thursday as traders squared positions
ahead of a widely watched U.S. Department of Agriculture (USDA)
report scheduled to be released later in the session.
    Wheat edged higher, after Wednesday's fall on bumper
supplies from top exporting countries.
    The most-active soybean contract on the Chicago Board Of
Trade gained 0.5% to $8.70-1/2 a bushel by 0339 GMT,
having closed down 0.6% on Wednesday. Corn added 0.2% to
$3.60-3/4 a bushel and wheat was up 0.1% at $4.77-3/4 a
bushel.
    The market is awaiting the USDA report, which is expected to
show smaller U.S. corn and soybean crops, after the agency
sprung a surprise last month with a higher-than-anticipated
forecast.
    Warmer-than-normal weather across much of the U.S. Midwest
is expected to accelerate the maturity of late-planted crops,
reducing the risk that frost would damage yields.
    Hopes for renewed Chinese purchases of U.S. agricultural
products could provide support to the market ahead of high-level
trade talks next month between the two countries.
    China announced a short list of tariff exemptions on
Wednesday, but key farm products were not included.
    "The market was briefly disappointed not to make China's
list of tariff exclusions but that passed quickly," said Tobin
Gorey, director of agricultural strategy at Commonwealth Bank of
Australia. 
    "The market clearly has an eye on the USDA's update of their
crop forecasts later today."
    There could be more pressure on the U.S. soybean market if
China starts taking South American soymeal. 
    Argentine soybean farmers and crushers expect a boost in
demand next year after the South American grains giant won
long-sought approval from China to export soymeal to the world's
biggest consumer of the livestock feed.
    Abundant supplies are keeping a lid on wheat futures.
    French soft wheat exports outside the European Union are
expected to climb to a four-year high in 2019/20 as the EU's
biggest grain producer shifts a bumper harvest, farm office
FranceAgriMer said on Wednesday.
    Exports of soft wheat, France's main cereal crop, are
projected to increase nearly 14% from the last season to 11.0
million tonnes, the highest since 2015/16, FranceAgriMer said in
its first supply-and-demand outlook for the 2019/20 season that
started in July.
    Commodity funds were net sellers of Chicago Board of Trade
wheat, corn, soybean and soymeal futures contracts on Wednesday
and net buyers of soyoil, traders said.              
    
 Grains prices at 0339 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  477.75  0.25    +0.05%   -0.93%       478.26  57
 CBOT corn   360.75  0.75    +0.21%   -0.21%       378.32  38
 CBOT soy    870.50  4.00    +0.46%   -0.17%       869.98  51
 CBOT rice   12.05   -$0.04  -0.37%   +0.29%       $11.73  77
 WTI crude   56.22   $0.47   +0.84%   -2.06%       $55.23  
 Currencies                                                
 Euro/dlr    $1.101  $0.000  +0.03%   -0.28%               
 USD/AUD     0.6876  0.001   +0.22%   +0.25%               
 
 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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