October 15, 2018 / 11:35 AM / a month ago

GRAINS-Corn drops after strong gains as ample supply drags on prices

    * Corn eases after climbing to highest since Aug. 21
    * Abundant supplies of corn, soybeans limit gains
    * EU corn crop outlook revised higher
    * Wheat prices supported by lower output in Russia,
Australia

 (Updates prices, adds details, changes dateline)
    By Naveen Thukral and Sybille de La Hamaide
    Oct 15 (Reuters) - Chicago corn futures lost ground on
Monday as the market took a breather following two sessions of
strong gains triggered by a forecast for lower U.S. production.
    Wheat eased slightly after climbing 1.8 percent on Friday,
with prices supported by weaker production in Russia and
Australia.
    The Chicago Board of Trade most-active corn contract
had dropped 0.5 percent to $3.71-3/4 a bushel by 1056 GMT, while
soybeans gave up 0.35 percent to $8.64-1/2 a bushel.
    The corn market climbed to its highest since Aug. 21 on
Friday at $3.74 a bushel. 
    On Monday wheat dipped 0.1 percent to $5.16-1/2 a
bushel.
    "Soybeans and corn are easing after strong gains that we saw
at the end of last week," said Phin Ziebell, agribusiness
economist at National Australia Bank.
    "The USDA has cut its estimates for corn and soybean crops,
but both crops are expected to still be pretty large which will
keep a lid on prices."
    The U.S. Department of Agriculture unexpectedly trimmed its
forecasts for domestic corn and soybean output on Thursday. The
soy cut stemmed from a reduction in acres while the corn harvest
will be lower due to smaller-than-expected yields.
    The corn crop was seen at 14.778 billion bushels, based on
an average record yield of 180.7 bushels per acre, the
government said in its monthly supply and demand report. 
    Soybean production was pegged at 4.690 billion bushels, with
yields averaging a record 53.1 bushels per acre.
    There was additional support for corn and soybeans stemming
from delays in the harvest in the United States.
    Drier Midwest weather is expected in the second half of
October, but heavy rains last week may have damaged some crops.
    Strategie Grains analysts sharply increased their estimate
of this year's maize harvest in the European Union on Friday as
bumper yields in southeast Europe were seen offsetting a
drought-hit crop further west.
    German farmers' cooperative DRV had increased its forecast
for Germany's marketable maize crop by 400,000 tonnes to 2.7
million tonnes. That would still 40 percent down on last year as
farmers are using the crop for on-farm feed after the severe
drought that hit the country, rather than selling it.
    "(Grain) sowing for 2019/20 is already underway, but the
continuing dry conditions are also weighing on the outlook here
at present," Commerzbank said in a note.
    In the soybean market, the focus is on the
Washington-Beijing trade war which has curbed U.S. bean exports
to top importer China.
    China bought 8.01 million tonnes of soybeans in September,
down from 9.15 million tonnes in August and below the 8.11
million tonnes recorded in September 2017, according to Reuters
calculations based on Chinese customs data. 
    The wheat market is being underpinned by tightening world
supplies after the USDA cut forecasts for Russian and Australian
crops on Thursday. 
    
 Prices at 1056 GMT                                            
                             Last  Change    Pct     End    Ytd
                                            Move    2017    Pct
                                                           Move
  CBOT wheat Dec           516.50   -0.75  -0.14  427.00  20.96
  CBOT corn Dec            371.75   -2.00  -0.54  350.75   5.99
  CBOT soy Dec             864.50   -3.00  -0.35  951.75  -9.17
  Paris wheat Dec          204.50   -0.25  -0.12  162.50  25.85
  Paris maize Nov          173.25   -1.00  -0.57  163.50   5.96
  Paris rape Aug           370.50   -1.00  -0.27  347.75   6.54
  WTI crude oil             71.74    0.40   0.56   60.42  18.74
  Euro/dlr                   1.16    0.00   0.28               
 Most active contracts - Wheat, corn and soy US cents/bushel,
 Paris futures in euros per tonne
 
 (Reporting by Naveen Thukral and Sybille de La Hamaide; Editing
by Richard Pullin, Joseph Radford and Jan Harvey)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below