September 11, 2017 / 3:54 AM / 12 days ago

GRAINS-Corn up for second day on expectations of lower US yields

    * Corn rises ahead of U.S. monthly supply-demand report
    * Market expects USDA to slightly reduce crop forecast

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Sept 11 (Reuters) - Chicago corn futures rose for
a second session on Monday on expectations of a marginally lower
yield-forecast from the U.S. Department of Agriculture, although
ample world supplies kept a lid on prices.
    The Chicago Board of Trade most-active corn contract
had risen 0.2 percent to $3.57-1/2 a bushel by 0315 GMT, having
gained 0.4 percent in the previous session.
    Wheat climbed 0.4 percent to $4.39-1/2 a bushel, after
closing up 0.1 percent on Friday, while soybeans were up
0.4 percent at $9.66 a bushel, having ended Friday down 0.7
percent.
    "The (corn) market is expecting the USDA to lower yields,
which is providing some support," said one India-based
agricultural commodities analyst. 
    "But even with slightly lower yields, supply pressure is not
going to ease. We have huge stocks."
    Corn prices have been facing pressure in recent weeks from
expectations of a bumper U.S. harvest, with the U.S. government
set to update its crop production forecast in a monthly report
on Tuesday.
     China's corn output in 2017 will be higher than previously
expected thanks to favourable weather as the grain matures, the
China National Grain and Oils Information Center said on Friday.
    According to its latest forecast, China will produce 212.5
million tonnes of corn, 3.2-percent lower than last year but 1
million higher than an August estimate of 211.5 million tonnes.
    For soybeans, Chinese demand is likely to be the key driver
after the U.S. harvest finishes. 
    The USDA said on Friday morning that private exporters
reported the sale of 264,000 tonnes of soybeans to China for
delivery during the 2017/18 marketing year, the biggest flash
sale in 2-1/2 weeks.
    Weekly export sales of soybeans totalled 1.16 million
tonnes, the USDA said, just above market forecasts that ranged
from 500,000 to 1.10 million tonnes.
    China, the world's largest soybean buyer, imported 8.45
million tonnes of soybeans in August, a record for the month,
customs figures showed on Friday.
    Canada's spring wheat harvest could be larger than expected,
adding to ample global supplies of the grain, crop analysts
said, but quality has been variable, keeping stocks of wheat for
making bread in tight supply.

 Grains prices at  0315 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  439.50  1.75     +0.40%   +0.51%       453.86  45
 CBOT corn   357.50  0.75     +0.21%   +0.63%       365.95  53
 CBOT soy    966.00  4.00     +0.42%   -0.28%       952.64  59
 CBOT rice   12.64   -$0.09   -0.67%   -0.43%       $12.62  54
 WTI crude   47.82   $0.34    +0.72%   -2.59%       $48.17  49
 Currencies                                                 
 Euro/dlr    $1.201  -$0.002  -0.17%   -0.07%               
 USD/AUD     0.8043  -0.001   -0.19%   -0.04%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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