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GRAINS-Corn rebounds from 4-month low; benign U.S. weather weighs

Naveen Thukral

* Corn rises, but not far from Friday's lowest since mid-May

* Crop-friendly U.S. weather, lack of demand weigh on corn prices

(Adds details, quote) SINGAPORE, Sept 9 (Reuters) - Chicago corn futures edged higher on Monday, with bargain buying supporting prices after the market dropped to its weakest in almost four months in the previous session on crop-friendly U.S. weather. Wheat eased for a second session, weighed down by abundant world supplies, while soybeans gained after closing lower in the last two sessions. The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.4% at $3.56-3/4 a bushel, as of 0405 GMT, having dropped to its lowest since May 13 at $3.53 a bushel. Soybeans were up 0.1% at $8.58-1/2 a bushel and wheat lost 0.1% to $4.63-1/4 a bushel. "Prices are yielding to seasonal pressure," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring CBOT corn futures. "The market seems to want to offer challenge to that seasonal decline." There are forecasts of beneficial rains this week in portions of the U.S. grain belt, and no sign of a cold spell that could shorten the growing season for this year's late-maturing corn and soy crops, analysts said. Private analytics firm IEG Vantage, formerly known as Informa Economics IEG, raised its forecast of the average U.S. 2019 corn yield to 169.6 bushels per acre (bpa), up from 167.8 bpa a month ago and just above the U.S. Department of Agriculture's estimate of 169.5 bpa. There was additional pressure on the corn market stemming from dismal demand. U.S. Department of Agriculture reported export sales of U.S. corn in the latest week at 250,800 tonnes (old and new crop years combined), below a range of trade expectations for 500,000 tonnes to 900,000 tonnes. Strong demand is supporting soybeans. The USDA reporting weekly soybean export sales at 857,900 tonnes (old and new crop years combined), above trade expectations. China's soybean imports in August jumped 9.7% from the previous month to hit the highest level in nearly one-and-half-years, customs data showed on Sunday, as some shipments booked earlier cleared customs after a delay. Imports of 9.48 million tonnes were up in August from 8.64 million tonnes in July, and also ahead of 9.15 million tonnes in August last year, according to data from the General Administration of Customs. Large speculators increased their net short position in CBOT corn futures in the week ended Sept. 3, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans

Grains prices at 0405 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 463.25 -0.50 -0.11% -0.64% 480.27 44CBOT corn 356.75 1.25 +0.35% -0.56% 384.26 20CBOT soy 858.50 0.75 +0.09% -0.35% 872.45 38CBOT rice 11.96 -$0.01 -0.08% -0.08% $11.77 69WTI crude 57.12 $0.60 +1.06% +1.46% $55.34

Currencies

Euro/dlr $1.102 $0.000 -0.03% -0.08%USD/AUD 0.6854 0.001 +0.12% +0.60%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)