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Tuesday, June 15, 2021

GRAINS-Corn eases as improved weather outlook offsets crop rating fall - Successful Farming

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* Corn futures capped by expectation of improved Midwest weather * U.S. corn, soybean crop ratings declined sharply after hot, dry spell * Wheat falls again, soybeans mixed as veg oils rebound (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, June 15 (Reuters) - Chicago corn futures fell further on Tuesday as the market focused an improved weather outlook for the U.S. Midwest, tempering reaction to a sharp fall in crop conditions last week. Wheat also stayed weak, pressured by corn and expectations of large winter wheat harvests in the northern hemisphere. Soybeans were mixed as the oilseed market weighed the prospect of beneficial rain and moderate temperatures in the Midwest against a worse than expected crop rating and a rebound in vegetable oil prices. The most-active corn contract on the Chicago Board Of Trade (CBOT) was down 0.2% at $6.58-1/1 a bushel by 1101 GMT. The contract added to a 3.7% slide in the previous session, although it held above Monday's low of $6.53. New-crop December corn was down around 1% on Tuesday. "The weather forecasts for the U.S. Midwest have been somewhat more favourable of late," Commerzbank said in a note. "Accordingly, the crop progress report that was published yesterday ... met with a more complacent response than might otherwise have been the case." Weather forecasts showing cooler temperatures and widespread rain from later this week fuelled Monday's price slide, easing concern about a hot, dry spell in part of the Midwest. The impact of recent dryness was reflected in the U.S. Department of Agriculture's (USDA) weekly crop update released after Monday's market close. The report rated 68% of corn as good to excellent, down four points from the previous week and below the average trade estimate. "Most important has been the swing in weather forecasts for the northwest and west Midwest of the U.S.," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. Expectations of an upward revision to the USDA's estimate of U.S. corn plantings in an end-June acreage report were also curbing prices, traders said. CBOT soybeans were up 0.8% at $14.83-1/2 a bushel, although new-crop prices were down marginally. The USDA rated 62% of U.S. soybean crops as good to excellent, down five points from the prior week and below average market expectations. CBOT wheat was down 1.9% at $6.62 a bushel. Wheat traders were awaiting the outcome of a tender by top importer Egypt, expected to draw a large number of offers of Black Sea region wheat. Prices at 1101 GMT Last Change Pct End Ytd Pct Move 2020 Move CBOT wheat 662.00 -12.50 -1.85 640.50 3.36 CBOT corn 658.25 -1.00 -0.15 484.00 36.00 CBOT soy 1483.50 11.25 0.76 1311.00 13.16 Paris wheat Sep 207.25 -1.75 -0.84 192.50 7.66 Paris maize Jun 258.50 -1.25 -0.48 219.00 18.04 Paris rape Aug 512.00 2.25 0.44 418.25 22.41 WTI crude oil 71.46 0.58 0.82 48.52 47.28 Euro/dlr 1.21 0.00 0.00 1.2100 0.15 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Shounak Dasgupta and Steve Orlofsky)

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June 15, 2021 at 06:21PM
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GRAINS-Corn eases as improved weather outlook offsets crop rating fall - Successful Farming

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