September 13, 2017 / 4:04 AM / 6 months ago

GRAINS-Corn, soybeans edge up on bargain-buying; U.S. crop outlook caps gains

    * Corn up after last session's biggest one-day loss in a
    * Soybeans recoup losses following 4 days of decline
    * Surprise increase forecast for U.S. corn, soybean yields

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 13 (Reuters) - Chicago corn futures rose on
Wednesday after suffering its biggest one-day decline in almost
a month while soybeans gained ground following a four-session
losing streak with bargain-buying supporting the market. 
    A surprise increase in the forecast for U.S. corn and
soybean yields by the U.S. Department of Agriculture (USDA) is
unlikely to support any rally in both markets.
    The most-active corn contract on the Chicago Board of Trade
 was up 0.2 percent at $3.52-1/4 a bushel by 0241 GMT. They
slumped 1.7 percent in the previous session, the biggest one-day
drop since Aug. 15. Prices fell to their lowest since Aug. 31 at
$3.45-1/2 a bushel.
    Soybeans gained 0.5 percent at $9.54-3/4 a bushel,
having closed down 1 percent on Tuesday while wheat rose
0.2 percent to $4.43 a bushel, after ending Tuesday up 1.7
    "Increase in corn yields was a total surprise and it is
bearish news for the market," said an India-based agricultural
commodities analyst. "The weather has not been as good as last
year but crops seem to have been resilient in the face of
adverse weather." 
    The USDA in a monthly report on Tuesday raised its estimate
of the average U.S. 2017 corn yield to 169.9 bushels per acre
(bpa) from its August estimate of 169.5 bpa, above the average
of analyst expectations for 168.2 bpa.
    The agency increased its soybean yield estimate to 49.9 bpa,
from 49.4 bpa in August, topping a range of trade expectations. 
    The USDA's estimates on wheat were bullish for the market. 
    It trimmed its world wheat ending stocks forecast for
2017/18 to 263.14 million tonnes, from 264.69 million in August.

    Dry weather has limited U.S. and Australian wheat
    The Australian government on Tuesday lowered its estimate of
the country's 2017/2018 wheat crop to 21.64 million tonnes, an
eight-year low, from a March forecast of 23.98 million.

    In news which could impact markets going forward, after
strong weekend storms, early spring rainfall threatens to cut by
half the planted area of soybeans and corn in Argentina's
largest producing province of Buenos Aires, analysts said on
    Above average levels of humidity now affect 4.8 million
hectares (11.9 million acres), or 28 percent of Buenos Aires's
agricultural lands, according to farm group Carbap. Moisture has
been accumulating since early in the year.

 Grains prices at  0241 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  443.00  1.00    +0.23%   +1.90%       450.24  53
 CBOT corn   352.25  0.75    +0.21%   -1.47%       364.03  44
 CBOT soy    954.75  4.25    +0.45%   -0.55%       949.98  51
 CBOT rice   12.91   -$0.04  -0.35%   +1.98%       $12.65  67
 WTI crude   48.25   $0.02   +0.04%   +0.37%       $48.08  53
 Euro/dlr    $1.198  $0.001  +0.11%   +0.23%               
 USD/AUD     0.8030  0.001   +0.15%   +0.02%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Christian
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