April 1, 2019 / 3:26 AM / 3 months ago

GRAINS-Corn ticks up after deep cuts; abundant supplies cap gains

    * Corn firms after biggest one-day loss in three years
    * Soybeans rise on optimism over U.S.-China trade talks

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, April 1 (Reuters) - U.S. corn edged higher on
Monday, with bargain-buying supporting prices after the market
suffered its biggest one-day drop in nearly three years in the
previous session due to pressure from ample supplies.
    Soybeans rose on optimism over U.S.-China trade talks, while
wheat slid for a third consecutive session.
    The Chicago Board of Trade (CBOT) most-active corn contract
 rose 0.6 percent to $3.58-3/4 a bushel by 0259 GMT, after
its biggest one-day fall since July 2016 on Friday.
    Wheat lost 0.1 percent to $4.57-1/2 a bushel and
soybeans gained 0.4 percent at $8.88 a bushel. 
    Massive supplies of both U.S. corn and soybeans remained in
storage bins around the country ahead of spring planting, U.S.
Department of Agriculture (USDA) data released on Friday showed.

    In its quarterly stocks report, the USDA pegged domestic
corn supplies as of March 1 at the third-biggest on record,
wheat stocks were the second-largest in 31 years, and soybean
stocks were the largest ever.
    The USDA also said that farmers planned to boost their corn
plantings, but severe flooding in the U.S. Midwest may curtail
final acreage.
    The government said U.S. farmers planned to plant 92.792
million acres of corn and 84.617 million acres of soybeans this
spring. Its next acreage forecast is expected at the end of
June.
    "U.S. corn crop that develops normally from this level of
planting will be huge," said Tobin Gorey, director of
agricultural strategy, Commonwealth Bank of Australia.
    "And that crop will be big enough to ease any nascent
tightening in global feed grain balance sheets."
    At least 1 million acres (405,000 hectares) of U.S. farmland
were flooded after a "bomb cyclone" storm left wide swaths of
nine major grain producing states under water this month,
satellite data analyzed by Gro Intelligence for Reuters showed. 

    Large speculators trimmed their net short position in CBOT
corn futures in the week to March 26, regulatory data released
on Friday showed.
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and trimmed their net short
position in soybeans.
    Soybeans are drawing support from optimism that U.S.-China
trade talks are progressing and after Chinese importers booked
their second large U.S. soy purchase this month.
    China's State Council said on Sunday that the country would
continue to suspend additional tariffs on U.S. vehicles and auto
parts after April 1, in a goodwill gesture following a U.S.
decision to delay tariff hikes on Chinese imports.
    
 Grains prices at 0259 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  457.50  -0.25   -0.05%   -1.51%       462.55  40
 CBOT corn   358.75  2.25    +0.63%   -4.08%       372.53  30
 CBOT soy    888.00  3.75    +0.42%   -0.17%       905.68  38
 CBOT rice   10.84   -$0.01  -0.09%   -0.60%       $10.74  48
 WTI crude   60.49   $0.35   +0.58%   +2.01%       $57.81  
 Currencies                                                
 Euro/dlr    $1.123  $0.001  +0.12%   +0.09%               
 USD/AUD     0.7125  0.003   +0.44%   +0.71%               
 
 
 
    

 (Reporting by Naveen Thukral; editing by Richard Pullin and
Uttaresh.V)
  
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