Mon May 6, 2013
* U.S. corn falls 1.8 pct on lower-than-expected rain
* India lifts wheat crop estimate, may lower prices
By Naveen Thukral
SINGAPORE, May 6 (Reuters) - Chicago corn slid 1.8 percent on Monday, falling for a second straight session as fears over slow U.S. planting were eased by less rainfall than expected
over the weekend.
Wheat fell in line with losses in the corn market, with additional pressure from forecasts of higher production in India, which is expected to boost exports to trim burdensome
stockpiles.
Meteorologists had forecast wet weather to continue over the weekend, further slowing corn planting. However rainfall was lower than expected, which is likely to encourage farmers to
boost seeding that was running at a record low pace.
"There has been a lot of premium built in corn because of planting delays," said Brett Cooper, a senior markets manager at INTL FCStone Australia. "There is improved weather for corn now
and once farmers get on they can plant very quickly."
The Chicago Board of Trade most-active July corn contract fell 1.8 percent to $6.49-1/2 a bushel by 0327 GMT, but off a low of $6.44-1/2 a bushel hit earlier in the session.
Front-month corn logged steep gains of 8.6 percent last week, rising by the most since last summer's drought, as wet and chilly weather delayed plantings.
The market awaits a weekly crop progress report from the U.S. Department of Agriculture due later on Monday.
The report showed 5 percent corn had been planted as of April 28, down sharply from 49 percent a year earlier and the 31 percent 5-year average.
CBOT July wheat fell almost 1 percent to $7.14 a bushel, after dropping to a low of $7.06. July soybeans added quarter of a cent to $13.87-1/2 a bushel, after rising over 1 percent in the previous session.
The wheat market was pressured by expectations of higher supplies in India.
"Burdensome supplies will ensure India remains a large wheat exporter in the year ahead," Luke Mathews, commodities strategist at the Commonwealth Bank of Australia, told clients
in a note.
India has raised its expectations for this year's wheat output to just short of last year's record, keeping the pressure on the government to cut export prices and reduce stocks in
silos that are already overflowing.
India, the world's second-biggest producer of wheat after China, is expected to produce 93.62 million tonnes of the grain in the year to June, the farm ministry forecast on Friday, down
1.4 percent from 94.88 million last year.
Wheat prices, which rose more than 3 percent last week, have been underpinned by cold weather that has hindered crop development in Kansas, the biggest U.S. wheat state.
Scouts estimated total wheat production in the state at 313.1 million bushels, down 18 percent from 2012. Yield prospects in Kansas averaged 41.1 bushels per acre, according to
the Wheat Quality Council, which led a three-day tour of 570 fields across the state that ended on Thursday.
Before the tour started, analysts had been expecting wheat yields to be 39.4 bushels per acre, according to the average of estimates in a Reuters poll.
Large speculators covered short positions in CBOT corn futures as worries about planting delays reducing the size of the U.S. crop at harvest this fall pushed prices to a one-month
high last week.
The Commodity Futures Trading Commission's weekly Commitments of Traders report also showed that speculators, including hedge funds, raised their bullish bet on soybeans and
narrowed their net short in wheat futures.
Prices at 0327 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 714.00 -7.00 -0.97% 868.21 45
CBOT corn 649.50 -11.75 -1.78% 763.56 58
CBOT soy 1387.50 0.25 +0.02% 1576.79 60
CBOT rice $15.35 -$0.01 -0.03% $15.48 59
WTI crude $96.67 $1.06 +1.11% $89.20 69
Currencies
Euro/dlr $1.312 $0.083
USD/AUD 1.028 -0.027
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Additional reporting by Colin Packham in SYDNEY; Editing by Clarence Fernandez)
* U.S. corn falls 1.8 pct on lower-than-expected rain
* India lifts wheat crop estimate, may lower prices
By Naveen Thukral
SINGAPORE, May 6 (Reuters) - Chicago corn slid 1.8 percent on Monday, falling for a second straight session as fears over slow U.S. planting were eased by less rainfall than expected
over the weekend.
Wheat fell in line with losses in the corn market, with additional pressure from forecasts of higher production in India, which is expected to boost exports to trim burdensome
stockpiles.
Meteorologists had forecast wet weather to continue over the weekend, further slowing corn planting. However rainfall was lower than expected, which is likely to encourage farmers to
boost seeding that was running at a record low pace.
"There has been a lot of premium built in corn because of planting delays," said Brett Cooper, a senior markets manager at INTL FCStone Australia. "There is improved weather for corn now
and once farmers get on they can plant very quickly."
The Chicago Board of Trade most-active July corn contract fell 1.8 percent to $6.49-1/2 a bushel by 0327 GMT, but off a low of $6.44-1/2 a bushel hit earlier in the session.
Front-month corn logged steep gains of 8.6 percent last week, rising by the most since last summer's drought, as wet and chilly weather delayed plantings.
The market awaits a weekly crop progress report from the U.S. Department of Agriculture due later on Monday.
The report showed 5 percent corn had been planted as of April 28, down sharply from 49 percent a year earlier and the 31 percent 5-year average.
CBOT July wheat fell almost 1 percent to $7.14 a bushel, after dropping to a low of $7.06. July soybeans added quarter of a cent to $13.87-1/2 a bushel, after rising over 1 percent in the previous session.
The wheat market was pressured by expectations of higher supplies in India.
"Burdensome supplies will ensure India remains a large wheat exporter in the year ahead," Luke Mathews, commodities strategist at the Commonwealth Bank of Australia, told clients
in a note.
India has raised its expectations for this year's wheat output to just short of last year's record, keeping the pressure on the government to cut export prices and reduce stocks in
silos that are already overflowing.
India, the world's second-biggest producer of wheat after China, is expected to produce 93.62 million tonnes of the grain in the year to June, the farm ministry forecast on Friday, down
1.4 percent from 94.88 million last year.
Wheat prices, which rose more than 3 percent last week, have been underpinned by cold weather that has hindered crop development in Kansas, the biggest U.S. wheat state.
Scouts estimated total wheat production in the state at 313.1 million bushels, down 18 percent from 2012. Yield prospects in Kansas averaged 41.1 bushels per acre, according to
the Wheat Quality Council, which led a three-day tour of 570 fields across the state that ended on Thursday.
Before the tour started, analysts had been expecting wheat yields to be 39.4 bushels per acre, according to the average of estimates in a Reuters poll.
Large speculators covered short positions in CBOT corn futures as worries about planting delays reducing the size of the U.S. crop at harvest this fall pushed prices to a one-month
high last week.
The Commodity Futures Trading Commission's weekly Commitments of Traders report also showed that speculators, including hedge funds, raised their bullish bet on soybeans and
narrowed their net short in wheat futures.
Prices at 0327 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 714.00 -7.00 -0.97% 868.21 45
CBOT corn 649.50 -11.75 -1.78% 763.56 58
CBOT soy 1387.50 0.25 +0.02% 1576.79 60
CBOT rice $15.35 -$0.01 -0.03% $15.48 59
WTI crude $96.67 $1.06 +1.11% $89.20 69
Currencies
Euro/dlr $1.312 $0.083
USD/AUD 1.028 -0.027
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Additional reporting by Colin Packham in SYDNEY; Editing by Clarence Fernandez)
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