Mon Jun 18, 2012
* Traders look ahead to USDA data
* Weather in the United States remains key focus
By Colin Packham
SYDNEY, June 18 (Reuters) - U.S. corn rose on Monday following the election of a pro-bailout government in Greece, but off early highs as optimism waned slightly that the euro zone would avoid a fresh crisis.
Chicago Board Of Trade July corn rose 0.13 percent to $5.80-1/4 a bushel, having touched a high of $587-1/4 a bushel earlier in the session. A commodity trader said the front-month price has been checked by the rollover of long positions into the new-crop December contract, the expiration of July corn options on Friday, and rumors of Brazil corn imports into the United States.
Corn had been under pressure last week, slipping 3 percent as the market eyed the Greek elections.
While July corn fell, new-crop December corn firmed, climbing 1.24 percent to $5.12-1/2 a bushel, but the early buoyant trading was checked as corn fell back from a high of $5.16-1/2 a bushel.
July wheat rose 1.07 percent to $6.16 a bushel after climbing as high as $6.19-1/2 a bushel. The gains come after wheat fell 2.25 percent in the previous session.
Soybeans rose 0.55 percent to $13.83-1/2 a bushel, again falling back from early highs of $13.90 a bushel, having slipped 0.72 percent on Friday.
"The macro economic picture has been improved by the Greek elections and that has boosted sentiment," Ker Chung Yang, investment analyst said. "However, while the pro-bailout party won, and this may bring Greece back to the negotiations table with the IMF and EU, we have to bear in mind that situations with Italy and Spain remain unresolved."
Market eyes USDA report
With the Greek election result behind the market, traders are now focused on the next U.S. Department of Agriculture crop condition report, set for release late on Monday.
America's farmers this spring planted the largest area to corn in 75 years, and trade sources said Informa pegged the corn area at 96.8 million on June 15, above the firm's previous outlook for 96.1 million and above USDA's current forecast for 95.9 million.
Corn was planted at a record fast and early pace this season, which moved the critical pollination stage ahead two to three weeks in nearly all of the Midwest.
Corn plants in the southern and central areas of the United States are beginning to pollinate, or produce grain, a time when cool, wet weather is needed for the crop, but forecasts are calling for high temperatures and little widespread rain.
Light showers were recorded this weekend in the lower U.S. Midwest corn and soybean regions, which will ease crop stress, but the market remains concerned.
In its last crop condition report, the USDA 66 percent of the corn crop was in good-to-excellent condition, down from 72 percent the previous week and below the 69 percent rating a year ago.
Soybeans also suffered from the dry, hot weather. The USDA said soybean conditions dropped to 60 percent good-to-excellent from the previous 65 percent.
Weather continues to impact wheat, though market concerns have been eased with improving weather conditions in Europe and Australia. But the market was supported by news that China's official grain think-tank has revised down the country's 2012 winter wheat output to 111.7 million tonnes from a previous forecast of 114 million tonnes after widespread damage from disease.
Grains prices at 0443 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 616.00 6.50 +1.07% -6.24% 613.19 44
CBOT corn 580.25 0.75 +0.13% -11.88% 607.93 44
CBOT soy 1383.50 7.50 +0.55% +12.71% 1160.43 45
CBOT rice $14.00 $0.08 +0.57% -4.40% $14.41 44
WTI crude $84.80 $0.77 +0.92% -17.64% $98.35 45
Currencies
Euro/dlr $1.270 -$0.024 -1.88% -2.68%
USD/AUD 1.010 -0.026 -2.53% -2.56%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Colin Packham; Editing by Ed Lane)
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