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GRAINS-US new-crop corn jumps 3.7 pct to contract high
July 16, 2012 / 12:37 AM / 5 years ago

GRAINS-US new-crop corn jumps 3.7 pct to contract high

* Soy gains almost 2 pct, hits contract high; wheat adds 2
    * Forecasts of more stressful U.S. weather this week

 (Adds details, quotes)
    SINGAPORE, July 16 (Reuters) - Chicago new-crop corn jumped
3.7 percent on Monday to a contract high, rising for a third
consecutive session, while soybeans climbed almost 2 percent as
forecasts of more stressful weather in the U.S. grain belt
buoyed the markets.
    Wheat climbed more than 2 percent, tracking corn higher and
building on the weather-driven rally in the U.S. grain markets
since mid-June.
    "Crop conditions are expected to deteriorate further," Luke
Mathews, a commodities strategist at the Commonwealth Bank of
Australia said in a report. "These crop concerns have been
supporting strong gains in U.S. grain and oilseed prices this
    Chicago Board of Trade new-crop December corn rose 3.7
percent to a contract high of $7.68 a bushel by 0027 GMT,
building on a 46 percent rally in prices in the last four weeks.
    Actively traded November soybeans gained almost 2
percent to $15.82 a bushel, a contract high, while September
wheat added 2.1 percent to $8.65-3/4 a bushel.
    A lack of meaningful rain in areas hardest hit by the worst
drought in nearly 25 years is shrinking the crops in the world's
top corn and soybean exporter.
    On Friday, forecasters said there was little relief in sight
this week, with temperatures set to return to the high 90s to
100 degrees Fahrenheit in the western Corn Belt, and rise to the
upper 90s F in the central-eastern Midwest.
    Drought stress has already dragged corn and soy crop
condition ratings to the lowest point for this time of year
since 1988, and traders are expecting further downgrades in the
U.S. Department of Agriculture's weekly report on Monday.
    Commodity funds were net buyers of an estimated 12,000 corn
contracts on the day, along with a net 5,000 soybean contracts,
trade sources said. 
    The Midwest drought has done considerable damage to this
year's corn crop. The USDA last week slashed its corn yield
estimate for the world's top grower and exporter by an
unprecedented 20 bushels, to 146 bushels per acre.
  Prices at 0002 GMT  
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     866.75    19.00  +2.24%    +2.24%     744.12   83
  CBOT corn      766.25    26.00  +3.51%    +3.51%     636.80   71
  CBOT soy      1578.75    26.25  +1.69%    +1.69%    1438.12   67
  CBOT rice      $15.35    $0.07  +0.43%    +2.37%     $14.75   69
  WTI crude      $87.08   -$0.02  -0.02%    +1.16%     $83.54   62
  Euro/dlr       $1.225  -$0.002  -0.12%    -0.04%
  USD/AUD         1.023   -0.002  -0.18%    +0.06%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 (Reporting by Naveen Thukral; Additional reporting by Lincoln
Feast in SYDNEY; Editing by Himani Sarkar)

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