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GRAINS-Corn hits 3-week low, data expected to show stockbuild
December 10, 2012 / 12:42 AM / 5 years ago

GRAINS-Corn hits 3-week low, data expected to show stockbuild

SYDNEY, Dec 10 (Reuters) - U.S. corn dropped to a three-week
low on Monday, stretching losses into a third straight session,
ahead of a key crop report later this week that is expected to
show a rise in stockpiles due to weak demand. 
             
    FUNDAMENTALS  
    * Chicago Board Of Trade March corn fell 0.5 percent
to $7.33-1/4 a bushel, after hitting a low of $7.33 -  its
weakest since Nov. 19. Corn slipped 1.9 percent in the previous
session, its biggest daily drop in almost a month.
    * January soybeans fell 0.3 percent to $14.68-1/2 a
bushel. The prices slid 1.3 percent on Friday. 
    * March wheat slid 0.3 percent to $8.58-1/2 a bushel,
having closed down slightly on Friday. 
    * Cash spot basis bids for corn weakened at several
locations in the interior U.S. Midwest on Friday amid sluggish
demand, while soybean bids held mostly steady, dealers said.
 
    * A monthly U.S. Department of Agriculture report next week
is expected to show U.S. corn stocks grew by 2.5 percent due to
poor export demand, a Reuters poll showed, although stocks will
remain the smallest in 17 years due to a crop-crippling drought
this year. 
    * Major wheat supplier Argentina will trim the quantity of
2012/2013 wheat destined for overseas shipment to 4.5 million
tonnes from a previous 6 million due to a smaller than forecast
harvest, a local newspaper reported on Saturday. 
    * In soybeans, the USDA on Friday confirmed private sales of
115,000 tonnes of U.S. soybeans to China for 2012/13 delivery.
 
    * Losses in the front-month soybean contract on Friday were
deepened by scheduled rolling of long positions by index funds
to the next contract month. The "Goldman Roll" is expected to
continue for four more days.
    * Improved weather in South America, where farmers are
expected to harvest the biggest soy crop ever next year, added
pressure in soybeans.
    * Rains are expected in Brazil's southern grain-producing
states, forecaster Somar said on Friday, a day after the
government held its forecast for a record soybean crop despite
some concern over dryness. 
    * Saudi Arabia bought 295,000 tonnes of hard wheat (12.5
percent protein minimum) from the European Union, Australia and
the United States for delivery during the period from March to
May 2013, its Grain Silos and Flour Mills Organisation (GSFMO)
said on Sunday. 
             
    MARKET NEWS  
    * The euro came under pressure in Asia on Monday as the
prospect of a recession in Germany and renewed concerns about
Italy weighed on sentiment, while strong Chinese data helped
support the Australian dollar.  
    * Oil prices were little changed on Friday after data
showing U.S. job growth offset statements by U.S. Republican
lawmaker John Boehner indicating deadlock in talks to avert a
U.S. budget crisis.  
    * The Dow and the S&P 500 advanced modestly on Friday,
though another sell-off in Apple depressed technology shares and
kept the Nasdaq negative, overshadowing a sharply
better-than-expected jobs report.  
    
    DATA/EVENTS (GMT) 
     China     Trade data             Nov 
     China     Commodity imports      Nov 
0700 Germany   Trade data             Oct 
0745 France    Industrial output      Oct 
0930 Euro zone Sentix index           Dec 
1500 U.S.      Employment trend index Nov 

  Grains prices at  0015 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     858.50    -2.50  -0.29%    -0.41%     874.08   44
  CBOT corn      733.25    -4.00  -0.54%    -2.43%     745.91   31
  CBOT soy      1468.50    -3.75  -0.25%    -1.53%    1461.71   55
  CBOT rice      $15.27    $0.00  +0.03%    -0.26%     $15.09   52
  WTI crude      $86.16    $0.23  +0.27%    -0.12%     $86.76   39
  Currencies                                                
  Euro/dlr       $1.291   $0.002  +0.16%    -0.11%
  USD/AUD         1.048    0.000  -0.04%    -0.07%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Himani Sarkar)

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