April 1, 2019 / 1:51 AM / 23 days ago

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

    SINGAPORE, April 1 (Reuters) - U.S. corn edged higher on
Monday after suffering its biggest one-day drop in nearly three
years in the previous session on pressure from plentiful
supplies.
    Wheat gained ground after two sessions of losses, while
soybeans rose on optimism over U.S.-China trade talks.
    
    FUNDAMENTALS
    * The Chicago Board of Trade most-active corn contract
rose 0.6 percent to $3.58-1/2 a bushel by 0124 GMT, after its
biggest one-day fall since July 2016 on Friday.
    * Wheat added 0.1 percent to $4.58-1/4 a bushel and
soybeans gained 0.3 percent at $8.87-1/4 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.
    * 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
Chicago Board of Trade 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 noncommercial
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.

    
    MARKET NEWS
    * Asian stocks rose on Monday, as signs of progress in
U.S.-China trade talks and firmer Wall Street shares supported
sentiment, although another defeat for British Prime Minister
Theresa May's proposed Brexit deal added to the pound's recent
woes.
    
    DATA/EVENTS (GMT)
0200   Indonesia  Inflation YY                   March
0750   France     Markit Mfg PMI                 March
0755   Germany    Markit/BME Mfg PMI             March
0800   EU         Markit Mfg Final PMI           March
0830   UK         Markit/CIPS Mfg PMI            March
0900   EU         HICP Flash YY                  March
0900   EU         HICP-X F&E Flash YY            March
1230   US         Retail Sales MM                Feb
1300   Russia     GDP YY Quarterly Prelim        Q4
1300   EU         European Central Bank Vice-President Luis de
                  Guindos presents the ECB's annual report for 
                  2018 to the Committee on Economic and Monetary
                  Affairs of the European Parliament
1400   US         ISM Manufacturing PMI          March
 
 Grains prices at 0124 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  458.25  0.50    +0.11%   -1.35%       462.58  42
 CBOT corn   358.50  2.00    +0.56%   -4.14%       372.52  30
 CBOT soy    887.25  3.00    +0.34%   -0.25%       905.65  38
 CBOT rice   10.86   $0.01   +0.05%   -0.46%       $10.74  49
 WTI crude   60.48   $0.34   +0.57%   +1.99%       $57.81  
 Currencies                                                
 Euro/dlr    $1.123  $0.001  +0.08%   +0.05%               
 USD/AUD     0.7117  0.002   +0.32%   +0.59%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; editing by Richard Pullin)
  
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