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GRAINS-Corn up as US crop suffers, wheat firm after losses
May 30, 2012 / 1:37 AM / 5 years ago

GRAINS-Corn up as US crop suffers, wheat firm after losses

SYDNEY, May 30 (Reuters) - Chicago corn rose half a percent
on Wednesday, recouping some of last session's deep losses after
a government report showed deterioration in the condition of the
U.S. crop, while soybeans rose for a fourth straight session.	
    Wheat prices rose 0.5 percent in early Asian trade after
sliding 3.4 percent on Tuesday when the market was pressured by
technical selling, and rains in parts of Russia and Australia
eased crop concerns.	
    	
    FUNDAMENTALS	
    * Heat and a lack of rain is taking a toll on the fledgling
U.S. corn crop, with condition ratings tumbling more than
expected by analysts polled by Reuters.	
    * The U.S. Department of Agriculture's weekly crop progress
report on Tuesday said that 72 percent of the crop was in
good-to-excellent condition, down 5 percentage points from a
week ago. Analysts polled by Reuters expected the crop's rating
to drop 2 to 4 percentage points. 	
    * Farmers wrapped up corn plantings last week and were
nearing the end of soybean seedings at 89 percent complete
because of the record early start to plantings this season and
overall satisfactory weather through the end of May.	
    * Rains are forecast for the U.S. Midwest on Wednesday
through Friday, said Andy Karst, meteorologist for World Weather
Inc. Showers will be heaviest in areas west of the Mississippi
River, with parts of Iowa, Missouri and Nebraska receiving as
much as 2 inches (5 cm).	
    * Rain is also seen in portions of the lower Midwest,
providing critical relief to stressed corn crops in those areas,
although more will be needed to foster development. Traders said
rain was unlikely to penetrate the dry subsoils that were
slowing soybean emergence.	
    * China is likely to raise soybean imports to 56.8 million
tonnes in the 2011/12 crop year despite recent shipment
cancellations because of a small domestic soy crop and rising
demand, oilseed analyst Oil World said.	
    * Oil World also said Argentina's 2012 soybean crop could
fall as low as 39 million to 40 million tonnes due to drought
and flooding in the country, the third-largest soy producer.	
    * Reports of rain in dry southern Russia since the weekend
reassured the market, with Russia's state forecaster predicting
more rainfall this week. 	
    * Much-needed rainfall over the weekend across Australia's
eastern grain belt raised hopes of higher yields for the 2012/13
wheat crop as farmers in one of the world's top exporters wind
up planting. 	
    	
    MARKET NEWS	
    * The euro fell on Tuesday to its weakest level versus the
U.S. dollar since July 2010 on Spain's soaring borrowing costs
and expectations more spending will be necessary to support its
ailing banks. 	
    * U.S. crude futures held steady on Wednesday, after a
downgrade of Spain's credit rating sent the euro to a near
two-year low against the dollar and pressured oil prices a day
earlier. 	
    * U.S. stocks rose on Tuesday as signs Greece would stay in
the euro zone were enough to spark buying in what has been a
weak month for equities, while Facebook plumbed new lows on high
volume. 	
    	
      	
    DATA/EVENTS	
    May 30 	
 0800  EZ        Money-M3 3m moving av     Apr                           
 0900  EZ        Business climate          May                           
 0900  EZ        Economic sentiment        May                           
 1130  India     M3 Money Supply           41042                         
 1145  U.S.      ICSC chain stores yy      Weekly                 
 1400  U.S.      Pending home sales        April  
 2315  Japan     Manufacturing PMI         May
 2350  Japan     Industrial output         April     
    	
                                                                                                        
  Grains prices at  0036 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30  RSI 
  CBOT wheat     659.75     3.00  +0.46%   -2.98%     637.56   53
  CBOT corn      565.50     3.00  +0.53%   -2.25%     605.65   28
  CBOT soy      1391.00     4.25  +0.31%   +0.65%    1434.51   46
  CBOT rice      $14.31    $0.06  +0.39%   -1.38%     $15.30   25
  WTI crude      $90.68   -$0.08  -0.09%   -0.20%     $97.78   28
  Currencies                                                
  Euro/dlr       $1.247  -$0.002  -0.16%   -0.53%
  USD/AUD         0.982   -0.002  -0.17%   -0.27%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                                        
                                                                                                        
                                                                                                        
 	
	
 (Reporting by Pauline Askin; Editing by Naveen Thukral)

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