Wed Jun 20, 2012
* New-crop corn falls after soaring over 10 pct this week
* Market anxious for fresh weather forecasts
SYDNEY, June 20 (Reuters) - U.S. corn slid on Wednesday as traders locked in profits after the contract jumped 10 percent in the previous two sessions on concerns that hot, dry weather in the Midwest will reduce new-crop yields.
Soybeans rose for the fourth consecutive session after the U.S. Department of Agriculture said the quality of new-crop soybeans had deteriorated beyond analysts' expectations in the past week.
Chicago Board Of Trade December corn fell 0.44 percent to $5.61 a bushel, having risen 5.52 percent in the previous session, while front-month July corn slipped 0.37 percent to $6.10-1/4 a bushel, having jumped 2.17 percent on Tuesday.
November soybeans rose 0.47 percent to 13.91 a bushel, having firmed 3.38 percent in the previous session, while July soybeans rose 0.77 percent to $14.44-1/2 a bushel, having leaped 3.38 percent on Tuesday.
July wheat was flat after climbing 3.1 percent in the previous session.
"There is perhaps a little bit of profit taking going on while people wait for fresh news on the weather map," Brett Cooper, senior manager of markets at FCStone Australia said.
HOT, DRY MIDWEST
Corn has soared this week, with new-crop December futures jumping over 10 percent as traders became increasingly concerned over the prospects for the 2012/13 crop amid a period of hot, dry weather in the U.S. grain belt.
USDA confirmed damage to corn and soybeans in its weekly crop report on Monday.
USDA said 63 percent of the corn was rated in good to excellent condition, down from 66 percent a week earlier, while 56 percent of the soy crop was in good-to-excellent shape as of Sunday, down 4 percentage points from last week and 2 percentage points poorer than the average of analyst estimates.
USDA also said 5 percent of U.S. corn had begun silking, an indication that the crop has reached its reproductive stage. Hot and dry weather during this phase can have a significant impact on yield.
Corn stocks are projected to hit a 16-year low this year, but with increased plantings, analysts has forecast a bumper 2012/13 crop.
The USDA has pegged old-crop corn ending stocks at 851 million bushels for the 2011/12 season, but in their latest forecast released last week, pegged stocks in 2012/13 at a bumper yield of 1.881 billion bushels.
Meteorologists continue to forecast further hot, dry weather across the U.S. Midwest, raising fears of further damage to crops, and a smaller yield potential.
USDA has projected an average U.S. corn yield for 2012 at 166 bushels per acre, but with the drop in ratings, private forecasts are falling closer to 160 bushels per acre.
While USDA has not reported any damaged to either spring or winter wheat, concerns persist about European weather, especially in the Black Sea region.
SovEcon chief executive Andrei Sizov Sr. on Tuesday lowered his 2012/13 grain harvest forecast by 4.5 percent and his wheat harvest forecast by 5.7 percent from previous estimates, and said the outlook could be reduced further due to falling yields.
Sizov Sr. forecast Russia's 2012/2013 grain harvest at 85 million tonnes, down from 94 million tonnes in 2011/2012.
His outlook for the wheat crop was 50 million tonnes, down from 56 million in 2011/2012.
Grains prices at 0330 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 649.75 0.25 +0.04% -1.10% 614.32 63
CBOT corn 561.00 -2.50 -0.44% -14.81% 607.29 61
CBOT soy 1444.75 11.00 +0.77% +17.70% 1162.48 66
CBOT rice $14.46 -$0.04 -0.28% -1.30% $14.43 62
WTI crude $83.91 -$0.12 -0.14% -18.50% $98.32 41
Currencies
Euro/dlr $1.267 -$0.027 -2.08% -2.88%
USD/AUD 1.018 -0.019 -1.80% -1.83%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Colin Packham; Editing by Daniel Magnowski)
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