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GRAINS-U.S. soybeans, corn fall as weather outlook improves
August 27, 2013 / 11:24 AM / 4 years ago

GRAINS-U.S. soybeans, corn fall as weather outlook improves

* Some showers added to the forecast for U.S. Midwest
    * CBOT corn drops 3 percent, soy off 1 percent
    * Wheat pressured by falling corn market

 (Recasts, adds new analyst, closing prices)
    By Mark Weinraub
    CHICAGO, Aug 27 (Reuters) - U.S. corn and soybean futures
fell on Tuesday as forecasts for slightly wetter-than-expected
weather across the U.S. Midwest prompted a round of
profit-taking following sharp gains the previous two sessions,
traders said.
    The weakness spilled over into the wheat market, but
declines were limited by good demand on the export market and
concerns about cold weather damaging the crop in South America.
    Corn had the biggest loss with the front-month contract
shedding 3.1 percent, its biggest decline in two weeks.
Soybeans, which were more vulnerable to the scorching
temperatures reported across the Midwest, fell nearly 1 percent.
    "They lowered the temperatures and they added a little bit
of rain," Chris Robinson, senior trader and analyst at Top Third
Ag Marketing, said of the new weather view. "That is really all
it takes. If you get the rain, this crop is going to be in
better shape." 
    CBOT September corn was down 16 cents at $4.99-3/4 a
bushel, with new-crop December sliding 14-1/4 cents at
$4.86-1/4. CBOT September wheat was 4 cents lower at
$6.50-3/4 a bushel.
    CBOT September soybeans were down 13-3/4 cents at
$14.14 a bushel. The new-crop November soybean contract 
was 19 cents lower at $13.70-1/2.
    Soybeans rallied throughout much of the morning, pushing the
new-crop contract to an 11-month high. The market turned lower
when the midday updates to the weather models raised the
possibility of showers providing relief to the crop in places
like Iowa during the next few weeks.
    The new outlook for the second week of September was of
particular interest.
    "It scatters showers and thunderstorms more numerously
across the Midwest, and there is a substantial cold surge that
occurs the eighth through the eleventh," said Drew Lerner,
meteorologist at World Weather Inc.
    The U.S. Agriculture Department's report on Monday afternoon
showed that crop yields for both corn and soybeans were at risk
of reduction if the weather, which has turned hot and dry during
the past month, did not provide some relief, traders said.
    Good-to-excellent ratings for U.S. soybeans dropped 4
percentage points to 58 percent good to excellent as of Aug. 25.
The drop was bigger than analysts expected.
    Corn ratings were 59 percent good to excellent, USDA said, 2
percentage points lower than a week earlier and in line with
market expectations.
 Prices at 1:56 p.m. CDT (1856 GMT)      
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  499.75   -16.00  -3.1%  -28.4%
 CBOT soy                  1414.00   -13.75  -1.0%   -0.3%
 CBOT meal                  455.90    -2.70  -0.6%    8.4%
 CBOT soyoil                 44.06    -0.38  -0.9%  -10.4%
 CBOT wheat                 650.75    -4.00  -0.6%  -16.4%
 CBOT rice                 1643.50    19.50   1.2%   10.6%
 EU wheat                   191.75     0.00   0.0%  -23.4%
 US crude                   108.98     3.05   2.9%   18.7%
 Dow Jones                  14,813     -133  -0.9%   13.0%
 Gold                      1417.26    12.86   0.9%  -15.4%
 Euro/dollar                1.3386   0.0015   0.1%    1.5%
 Dollar Index              81.1730  -0.2340  -0.3%    1.8%
 Baltic Freight               1169        4   0.3%   67.2%
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

 (Additional reporting by Julie Ingwersen; Editing by Bob
Burgdorfer and Jim Marshall)

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