November 6, 2019 / 4:21 AM / a month ago

GRAINS-Corn recovers from near four-week low, soybeans struggle

    * Chicago corn futures rise for 1st time in 5 sessions
    * Dry weather seen boosting U.S. harvest gathers pace

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 6 (Reuters) - Chicago corn futures ticked
higher for the first time in five sessions on Wednesday, helped
by bargain buying, although gains were limited as dry weather is
expected to boost the U.S. harvest.
    Soybeans were little changed, while wheat rose for a second
straight session.
    The most-active corn contract on the Chicago Board Of Trade
 was up 0.4% at $3.83-1/4 a bushel by 0348 GMT, having
dropped to an Oct. 11 low of $3.80-1/2 a bushel in the previous
session.
    Soybeans were little changed at $9.34 a bushel, after
ending 0.4% lower on Tuesday, while wheat was up 0.2% at
$5.16-1/4 a bushel, having gained 1.1% in the previous session.
    Dry weather is expected to boost harvest this week across
the U.S. Midwest grain belt. Some precipitation is expected over
the next week, but the weather is not likely to significantly
delay harvesting, according to weather forecaster Maxar.
    The U.S. Department of Agriculture (USDA) said 52% of the
U.S. corn crop was harvested by Sunday, slightly behind market
forecasts of 54%. Soybeans were 75% harvested, on par with
expectations.
    The USDA will issue its latest supply and demand report on
Friday.
    The market is anticipating minimal reductions to corn and
soybean crop outlooks, despite poor crop weather this year.

    Concerns over U.S.-China trade talks remain as Beijing
pushes President Donald Trump to remove more tariffs imposed in
September as part of a "phase one" trade deal.
    "The talk now is that, if the U.S. President wants to sign
the deal on U.S. soil, then China expects some other concession
from the United States," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
    "At present, China's gain from this stage of the negotiation
is that the United States is forgoing additional tariffs."
    The wheat market is being underpinned by estimates of lower
production in Australia. 
    Commodity brokerage INTL FCStone said on Wednesday a poll of
its clients estimated Australian wheat production during the
2019/29 season would be nearly 20% lower than official
estimates.
    INTL FCStone said its poll of an unspecified number of
clients pegged Australian wheat production at 15.54 million
tonnes, 19.1% lower than Australia's official estimate of 19.2
million tonnes.
    Commodity funds were net sellers of CBOT corn, soybean and
soyoil futures contracts on Tuesday, and net buyers of soymeal
and wheat futures, traders said.
    
 Grains prices at 0348 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  516.25  1.00    +0.19%   +1.28%       506.95  55
 CBOT corn   383.25  1.50    +0.39%   +0.00%       387.81  42
 CBOT soy    934.00  -0.25   -0.03%   -0.43%       936.60  48
 CBOT rice   11.95   -$0.02  -0.17%   +0.84%       $12.08  46
 WTI crude   56.92   -$0.31  -0.54%   +0.67%       $54.51  
 Currencies                                                
 Euro/dlr    $1.108  $0.000  +0.03%   -0.44%               
 USD/AUD     0.6896  0.000   +0.04%   +0.19%               
 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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