August 5, 2013 / 3:12 AM / 4 years ago

GRAINS-Corn falls to near 3-yer low, wheat rises for 2nd day

* Corn eases on near-perfect U.S. Midwest weather
    * Wheat rises for 2nd day on strong global demand

 (Adds detail, comment)
    By Naveen Thukral
    SINGAPORE, Aug 5 (Reuters) - Chicago corn prices lost more
ground on Monday, falling to the lowest since late 2010 on
forecasts of crop-friendly weather across the U.S. Midwest,
while soybeans edged higher on bargain-hunting after two weeks
of deep losses.
    Wheat rose for a second consecutive session as strong global
demand underpinned the market, but gains were capped by weakness
in corn.
    The weather outlook continues to reinforce a bearish view on
prices in agricultural markets, with rain and cool temperatures
aiding crops and boosting hopes of record U.S. supplies.
    Widely scattered thunderstorms hit the U.S. grain belt on
Thursday, with the biggest storms bringing as much as 5 inches
of rain in central and southeastern Nebraska, eastern Kansas and
west-central Missouri.
    Chicago Board of Trade new-crop December corn fell as
much as 0.5 percent to $4.61-1/4 a bushel, the lowest since
November, 2010. November soybeans added 0.4 percent to
$11.85-3/4 a bushel.
    Spot-month wheat gained 0.5 percent to $6.64 s bushel.
    "U.S. weather has been quite favourable for corn
production," said Vyanne Lai, agribusiness economist at National
Australia Bank. "We are seeing support for wheat as Japanese
have resumed imports of U.S. white wheat and export demand from
China has been strong."
    Two private forecasters, FCStone and Lanworth, last week put
the 2013 U.S. corn crop above the current outlook of the U.S.
Department of Agriculture.
    INTL FCStone estimated U.S. 2013 corn production at 13.993
billion bushels, with an average yield of 157.0 bushels per
    Crop forecaster Lanworth said it expected the corn crop to
be 14 billion bushels, based on an average yield of 158.5
bushels per acre.    
    Still, late planting has left much of the corn and soybean
crop well behind schedule and vulnerable to damage if
temperatures fall before harvest.
    Large speculators increased their net short position in CBOT
corn futures in the week to July 30, 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 cut their net long position in
    The wheat market is being supported by strong global demand
for U.S. supplies.
    Japan bought nearly 90,000 tonnes of U.S. western white
wheat in a tender on Thursday, marking the first purchase of the
variety by its top buyer after the discovery of a genetically
modified version of the grain in Oregon.

  Prices at 0230 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     664.00     3.50  +0.53%   866.54   57
  CBOT corn      463.25    -0.50  -0.11%   757.35   20
  CBOT soy      1185.75     4.25  +0.36%  1570.07   29
  CBOT rice      $15.81    $0.01  +0.06%   $15.50   56
  WTI crude     $106.94    $0.00  +0.00%   $89.55   61
  Euro/dlr       $1.327   $0.098  
  USD/AUD         0.886   -0.169 
  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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