Mon Jan 13, 2014
* Corn up for 2nd day
* USDA cuts global corn supply estimates
* Wheat rebounds from lowest since July, 2010
* Egypt buys 55,000 T U.S. soft red winter wheat
By Naveen Thukral
SINGAPORE, Jan 13 (Reuters) - U.S. corn jumped to its highest since late December on Monday, adding to last session's biggest one-day gain in eight months as a surprise reduction in
global supplies underpinned the market.
Wheat rose almost 1 percent after declining to a three-and-half year low on Friday, supported by Egyptian demand, while soybeans edged lower, snapping two consecutive sessions of
gains.
Chicago Board of Trade March corn was up 0.4 percent to $4.34-1/2 a bushel by 0339 GMT, just below the session peak of $4.35-1/2 a bushel, the highest since Dec. 24. Corn gained
more than 5 percent on Friday in its biggest one-day gain since April last year.
March soybeans fell 0.2 percent to $12.75-3/4 a bushel.
"Corn was under so much pressure before the report that it resulted in a large short-position in the market, but the USDA has surprised everyone," said Vanessa Tan, investment analyst at
Phillip Futures in Singapore.
The U.S. Department of Agriculture pegged 2013/14 U.S. corn production at a record 13.925 billion bushels, below its last estimate, in November, of 13.989 billion.
Analysts had expected the USDA to raise the estimate to 14.066 billion due to favourable conditions at harvest time in the fall.
Corn yields of 158.8 bushels per acre were down from the 160.4 estimated in November and also lower than the trade forecast.
Worldwide, the USDA projected global 2013/14 corn ending stocks at 60.23 million tonnes, down from its December estimate of 162.46 million. Analysts had predicted the USDA would raise
its outlook to 163.2 million.
Soybean production was seen at a record high of 3.289 billion bushels, up 1 percent from November but close to the average guess of 3.279 billion.
The wheat market received some support from bargain-hunting and Egypt's purchase of U.S. wheat. March wheat rose 0.9 percent to $5.74 a bushel.
Egypt, the world's biggest importer of wheat, bought 55,000 tonnes of soft red winter wheat from the United States for shipment in Feb 11-20.
The USDA pegged U.S. wheat stocks for the 2013/14 season at 608 million bushels, above market expectations.
Prices at 0339 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 574.00 5.00 +0.88% -2.51% 623.08 22
CBOT corn 434.50 1.75 +0.40% +4.20% 428.32 62
CBOT soy 1275.75 -2.75 -0.22% +0.51% 1305.69 46
CBOT rice $15.64 $0.00 -0.03% +0.61% $15.47 45
WTI crude $92.45 -$0.27 -0.29% -0.29% $96.47 31
Currencies
Euro/dlr $1.367 $0.007 +0.50% +0.74%
USD/AUD 0.903 0.013 +1.47% +1.40%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
* Corn up for 2nd day
* USDA cuts global corn supply estimates
* Wheat rebounds from lowest since July, 2010
* Egypt buys 55,000 T U.S. soft red winter wheat
By Naveen Thukral
SINGAPORE, Jan 13 (Reuters) - U.S. corn jumped to its highest since late December on Monday, adding to last session's biggest one-day gain in eight months as a surprise reduction in
global supplies underpinned the market.
Wheat rose almost 1 percent after declining to a three-and-half year low on Friday, supported by Egyptian demand, while soybeans edged lower, snapping two consecutive sessions of
gains.
Chicago Board of Trade March corn was up 0.4 percent to $4.34-1/2 a bushel by 0339 GMT, just below the session peak of $4.35-1/2 a bushel, the highest since Dec. 24. Corn gained
more than 5 percent on Friday in its biggest one-day gain since April last year.
March soybeans fell 0.2 percent to $12.75-3/4 a bushel.
"Corn was under so much pressure before the report that it resulted in a large short-position in the market, but the USDA has surprised everyone," said Vanessa Tan, investment analyst at
Phillip Futures in Singapore.
The U.S. Department of Agriculture pegged 2013/14 U.S. corn production at a record 13.925 billion bushels, below its last estimate, in November, of 13.989 billion.
Analysts had expected the USDA to raise the estimate to 14.066 billion due to favourable conditions at harvest time in the fall.
Corn yields of 158.8 bushels per acre were down from the 160.4 estimated in November and also lower than the trade forecast.
Worldwide, the USDA projected global 2013/14 corn ending stocks at 60.23 million tonnes, down from its December estimate of 162.46 million. Analysts had predicted the USDA would raise
its outlook to 163.2 million.
Soybean production was seen at a record high of 3.289 billion bushels, up 1 percent from November but close to the average guess of 3.279 billion.
The wheat market received some support from bargain-hunting and Egypt's purchase of U.S. wheat. March wheat rose 0.9 percent to $5.74 a bushel.
Egypt, the world's biggest importer of wheat, bought 55,000 tonnes of soft red winter wheat from the United States for shipment in Feb 11-20.
The USDA pegged U.S. wheat stocks for the 2013/14 season at 608 million bushels, above market expectations.
Prices at 0339 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 574.00 5.00 +0.88% -2.51% 623.08 22
CBOT corn 434.50 1.75 +0.40% +4.20% 428.32 62
CBOT soy 1275.75 -2.75 -0.22% +0.51% 1305.69 46
CBOT rice $15.64 $0.00 -0.03% +0.61% $15.47 45
WTI crude $92.45 -$0.27 -0.29% -0.29% $96.47 31
Currencies
Euro/dlr $1.367 $0.007 +0.50% +0.74%
USD/AUD 0.903 0.013 +1.47% +1.40%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
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