November 11, 2019 / 4:05 AM / a month ago

GRAINS-Corn falls on weak demand, soybeans ease for 2nd session

    * Corn loses ground on disappointing U.S. exports this year
    * Strong dollar, U.S.-China trade concerns weigh on prices

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 11 (Reuters) - Chicago corn futures lost
ground on Monday, giving up last session's gains as a firmer
dollar and weak demand put pressure on prices, although losses
were capped by a lower-than-expected U.S. production forecast.
    Soybeans slid for a second session, while wheat fell for a
third consecutive session.
    The most-active corn contract on the Chicago Board Of Trade
 was down 0.4% at $3.75-3/4 a bushel by 0340 GMT. It had 
gained 0.5% in the previous session.
    Soybeans were down 0.5% at $9.26-1/2 a bushel, having
closed down 0.6% on Friday. Wheat lost 0.2% to $5.09 a
bushel, following a 0.4% slide in the previous session. 
    "A stronger dollar and poor demand for U.S. supplies are
weighing on corn and beans," said Phin Ziebell, agribusiness
economist at National Australia Bank.
    The uncertainty surrounding an interim U.S.-China trade
agreement also poses a risk to prices, he added.  
    President Donald Trump on Friday said he has not agreed to
rollbacks of U.S. tariffs sought by China, sparking fresh doubts
about when the world's two largest economies may end a 16-month
trade war that has slowed global growth.
    However, prices were lent some support by the U.S.
Department of Agriculture's (USDA) move to lower its corn
harvest outlook on Friday to 13.661 billion bushels, from 13.779
billion a month earlier. 
    The outlook was based on an average yield of 167.0 bushels
per acre (bpa), down from 168.4 previously. 
    End-of-season U.S. corn stocks were trimmed to a
still-abundant 1.91 billion bushels, while exports were lowered
by 50 million bushels.
    The agency pegged the soybean crop at 3.550 billion bushels,
with yields seen at 46.9 bpa, unchanged from October.
    Forward sales of Argentine corn and soybeans are zooming
higher versus last year as growers hedge against possible
increases in export taxes under President Alberto Fernandez, who
is set to take office on Dec. 10.
    In parts of Europe, heavy rains have delayed grain sowings
with the situation particularly severe in Britain where they
could trigger a significant shift to spring planted crops.
    Large speculators widened their net short position in
Chicago Board of Trade corn futures in the week ended Nov. 5,
regulatory data released on Friday showed.
    The Commodity Futures Trading Commission's supplemental
commitments of traders report showed that noncommercial traders,
a category that includes hedge funds, expanded their net short
position in CBOT corn to 156,448 contracts, an increase of
12,480 lots for the week.
    
 Grains prices at 0340 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  509.00  -1.25   -0.24%   -0.68%       509.12  45
 CBOT corn   375.75  -1.50   -0.40%   +0.13%       387.53  30
 CBOT soy    926.50  -4.50   -0.48%   -1.07%       938.72  39
 CBOT rice   11.98   -$0.06  -0.50%   -0.42%       $12.05  60
 WTI crude   56.85   -$0.39  -0.68%   -0.52%       $54.66  
 Currencies                                                
 Euro/dlr    $1.102  $0.001  +0.05%   -0.24%               
 USD/AUD     0.6856  0.000   -0.04%   -0.59%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
             

 (Reporting by Naveen Thukral; Editing by Aditya Soni)
  
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