Thu Oct 4, 2012
* Soy up as bargain hunting supports after decline
* Corn falls on harvest, lower ethanol output
* Egypt bypasses U.S. wheat in tender, adds pressure
By Naveen Thukral
SINGAPORE, Oct 4 (Reuters) - U.S. soybeans edged higher on Thursday, rising for a second consecutive day on bargain hunting by end-users and investors after prices slid to a three-month low in the previous session, although gains were capped by harvest pressure.
Corn lost more ground, weighed down by a decline in U.S. ethanol production and record pace of the Midwest harvest. Wheat also eased, tracking corn and as Egypt continued to bypass U.S. wheat in tenders.
Soybeans have dropped almost $3 a bushel from a record high set a month ago in a selloff triggered by higher-than-expected yields and pressure from the rapidly advancing U.S. harvest.
Analysts said the market is awaiting U.S. Department of Agriculture's weekly export sales report later on Thursday for evidence of higher demand from importers.
"People are anticipating the weekly export sales report tonight to show a rebound in demand," said Ker Chung Yang, investment analyst at Phillip Futures.
"There has been some buying interest after prices fell and farmers have also slowed selling."
Spot basis bids for corn and soybeans firmed at U.S. Midwest river terminals on Wednesday, bolstered by lower barge freight and a slowdown in offerings of freshly harvested supplies.
Chicago Board of Trade November soy rose 0.5 percent to $15.39 a bushel by 0305 GMT. On a continuation chart, the spot contract slid to a low of $15.04 a bushel on Wednesday, the lowest price since June 29.
December corn fell 0.2 percent $7.55-1/4 a bushel, while December wheat lost 0.3 percent to $8.70 a bushel.
Grain markets had been under pressure this week from a rapidly progressing harvest and a steady stream of reports that yields, particularly for soybeans, were larger than expected.
Commodity brokerage INTL FCStone has raised its production estimates for U.S. corn and soybeans as the worst U.S. drought in a half century appeared not to have damaged crops as much as had been feared.
The markets are anticipating similar upward revisions in a report from closely followed advisory firm Informa later this week and a monthly USDA report next week.
The corn market came under pressure due to sluggish demand from ethanol producers.
U.S. ethanol production fell for the third straight week to the lowest level since the government began releasing the weekly data more than two years ago, the Energy Information Administration said.
Production of the biofuel dropped 3 percent to an average of 785,000 barrels per day for the week ended on Sept. 28, a decline of 24,000 bpd, the government data showed.
This comes as a relief to the livestock farmers who have been demanding suspension of a government mandate that requires converting more than a third of the U.S. corn crop to ethanol.
A decline in crude oil prices on Wednesday also hurt corn. Brent futures steadied above $108 a barrel on Thursday after a sharp drop in the previous session, with investors waiting for a European Central Bank policy meeting and critical jobs data out of the United States this week for more trading cues.
Crop-boosting rains in the U.S. Plains wheat belt and sluggish export demand weighed on wheat futures.
Global buyers continue to bypass U.S. wheat and look to lower-cost grain from rival exporters. Top importer Egypt bought 240,000 tonnes of French and Argentine wheat in the latest tender by the country's government buyer GASC.
Prices at 0305 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 870.00 -3.00 -0.34% 873.41 45
CBOT corn 755.25 -1.50 -0.20% 767.08 51
CBOT soy 1539.00 7.25 +0.47% 1581.84 27
CBOT rice $15.30 $0.06 +0.39% $15.48 53
WTI crude $88.28 $0.14 +0.16% $88.92 26
Currencies
Euro/dlr $1.293 $0.064
USD/AUD 1.021 -0.034
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
* Soy up as bargain hunting supports after decline
* Corn falls on harvest, lower ethanol output
* Egypt bypasses U.S. wheat in tender, adds pressure
By Naveen Thukral
SINGAPORE, Oct 4 (Reuters) - U.S. soybeans edged higher on Thursday, rising for a second consecutive day on bargain hunting by end-users and investors after prices slid to a three-month low in the previous session, although gains were capped by harvest pressure.
Corn lost more ground, weighed down by a decline in U.S. ethanol production and record pace of the Midwest harvest. Wheat also eased, tracking corn and as Egypt continued to bypass U.S. wheat in tenders.
Soybeans have dropped almost $3 a bushel from a record high set a month ago in a selloff triggered by higher-than-expected yields and pressure from the rapidly advancing U.S. harvest.
Analysts said the market is awaiting U.S. Department of Agriculture's weekly export sales report later on Thursday for evidence of higher demand from importers.
"People are anticipating the weekly export sales report tonight to show a rebound in demand," said Ker Chung Yang, investment analyst at Phillip Futures.
"There has been some buying interest after prices fell and farmers have also slowed selling."
Spot basis bids for corn and soybeans firmed at U.S. Midwest river terminals on Wednesday, bolstered by lower barge freight and a slowdown in offerings of freshly harvested supplies.
Chicago Board of Trade November soy rose 0.5 percent to $15.39 a bushel by 0305 GMT. On a continuation chart, the spot contract slid to a low of $15.04 a bushel on Wednesday, the lowest price since June 29.
December corn fell 0.2 percent $7.55-1/4 a bushel, while December wheat lost 0.3 percent to $8.70 a bushel.
Grain markets had been under pressure this week from a rapidly progressing harvest and a steady stream of reports that yields, particularly for soybeans, were larger than expected.
Commodity brokerage INTL FCStone has raised its production estimates for U.S. corn and soybeans as the worst U.S. drought in a half century appeared not to have damaged crops as much as had been feared.
The markets are anticipating similar upward revisions in a report from closely followed advisory firm Informa later this week and a monthly USDA report next week.
The corn market came under pressure due to sluggish demand from ethanol producers.
U.S. ethanol production fell for the third straight week to the lowest level since the government began releasing the weekly data more than two years ago, the Energy Information Administration said.
Production of the biofuel dropped 3 percent to an average of 785,000 barrels per day for the week ended on Sept. 28, a decline of 24,000 bpd, the government data showed.
This comes as a relief to the livestock farmers who have been demanding suspension of a government mandate that requires converting more than a third of the U.S. corn crop to ethanol.
A decline in crude oil prices on Wednesday also hurt corn. Brent futures steadied above $108 a barrel on Thursday after a sharp drop in the previous session, with investors waiting for a European Central Bank policy meeting and critical jobs data out of the United States this week for more trading cues.
Crop-boosting rains in the U.S. Plains wheat belt and sluggish export demand weighed on wheat futures.
Global buyers continue to bypass U.S. wheat and look to lower-cost grain from rival exporters. Top importer Egypt bought 240,000 tonnes of French and Argentine wheat in the latest tender by the country's government buyer GASC.
Prices at 0305 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 870.00 -3.00 -0.34% 873.41 45
CBOT corn 755.25 -1.50 -0.20% 767.08 51
CBOT soy 1539.00 7.25 +0.47% 1581.84 27
CBOT rice $15.30 $0.06 +0.39% $15.48 53
WTI crude $88.28 $0.14 +0.16% $88.92 26
Currencies
Euro/dlr $1.293 $0.064
USD/AUD 1.021 -0.034
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
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