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GRAINS-Corn prices rise, supported by U.S. crop condition

Chicago corn futures rose for a second session on Wednesday to their highest in more than a week, with prices supported by an unexpected decline in the U.S. crop’s condition.

Wheat lost ground as the market eased after climbing to a one-month high in the previous session, while soybeans slid, giving up some of Tuesday’s gains.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.1% at $3.62 a bushel, as of 0401 GMT, while wheat was down 0.5% at $4.79-3/4 a bushel.

In the previous session, the wheat market rose to its highest since Aug. 12 at $4.83-1/2 a bushel.

“I think U.S. crop condition report is supporting prices,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

“Just the fact that the corn market is at such low level, it doesn’t take much for prices to move little higher.”

The U.S. Department of Agriculture will issue the monthly crop supply and demand report on Thursday. The agency is expected to lower its corn and soybean crop outlook following higher-than-anticipated production forecasts last month.

A USDA crop condition report showed that 55% of the U.S. corn crop was in good-to-excellent shape, down from 58% last week and below market forecasts also for 58%.

The USDA also said 55% of the U.S. soybean crop was in good-to-excellent condition, matching analysts’ forecasts and unchanged from last week.

Wheat prices were supported in the last two sessions by concerns over production in Australia and Argentina.

Australia on Tuesday trimmed its wheat production forecast for the 2019/20 season by nearly 10% as prolonged dry weather across the country’s east coast wilts production.

Argentina’s wheat crop could also be damaged by dry conditions.

China’s plans to buy soymeal form Argentina could add pressure on U.S. soybean futures. CBOT soybeans were down 0.2% at $8.70-1/2 a bushel, having closed 1.7% firmer on Tuesday.

China will allow the import of soymeal livestock feed from Argentina for the first time under a deal announced by Buenos Aires on Tuesday, an agreement that will link the world’s top exporter of the feed with the top global consumer.

Commodity funds were net buyers of Chicago Board of Trade wheat, corn, soybean, soymeal and soyoil futures contracts on Tuesday, traders said.

 Grains prices at 0401 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  479.75  -2.50   -0.52%   +3.45%       479.62  66
 CBOT corn   362.00  0.50    +0.14%   +1.83%       382.01  41
 CBOT soy    870.50  -1.50   -0.17%   +1.49%       871.30  57
 CBOT rice   12.02   $0.00   +0.00%   +0.42%       $11.75  72
 WTI crude   57.86   $0.46   +0.80%   +0.02%       $55.38  
 Euro/dlr    $1.105  $0.002  +0.19%   +0.14%               
 USD/AUD     0.6863  0.002   +0.25%   +0.73%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

Source: Reuters (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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