Corn rises from 4-mth low; wheat, soy recover after losses

In Commodity News 06/01/2016

Chicago corn edged higher on Tuesday as the market took a breather after sliding in the last session to its lowest since early September on concerns over global demand growth and ample supplies. Wheat gained marginally in early Asian trade after dropping to a one-month low on Monday, while soybeans rose from a two-week low.

FUNDAMENTALS

* Chicago agricultural futures fell sharply on Monday as worries about economic growth in China and the dollar’s strength raised concerns about global demand for U.S. commodities.

* A private survey showed China’s factory activity contracted for the 10th straight month in December. The report on the world’s second largest economy triggered a sell-off in stock markets around the globe, with the weakness spilling into commodities markets.

* There was additional pressure on corn, wheat and soybeans stemming from favourable weather and plentiful supplies of all three products.

* Rain in centre-west and northern Brazil this week should ease concerns about the soy crop before harvesting, meteorologists said on Monday.

* Somar meteorologists forecast more than 150 millimetres (6 inches) of rain in the Araguaia Valley, northern Goias, Tocantins, Bahia, and in southern Maranhao a Piaui.

* Condition ratings for winter wheat in Illinois declined during December after heavy rains flooded part of the state, but more than half the crop was still seen as good to excellent, the U.S. Department of Agriculture said on Monday.

* The spotlight is on grain and oilseed shipments from Argentina which has reduced tax on soybean exports to 30 percent from 35 percent. It has scrapped taxes on corn and wheat.

* Data published on Monday by CIARA-CEC, Argentina’s chamber of grains exporting and soy crushing companies, showed firms sold $752.3 million to the central bank from exports between Dec. 28 and Dec. 30. That was more than double the amount sold in the whole of November.

* Large speculators increased their net short position in CBOT corn in the week to Dec. 29, regulatory data released on Monday showed.

* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.

MARKET NEWS

* Asian share markets were on the ropes for a second straight session on Tuesday as investors waited anxiously to see if Beijing can head off the latest selling stampede in Chinese stocks.

  Grains prices at  0123 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     459.50     1.25  +0.27%    -2.23%     479.66   29
  CBOT corn      354.25     2.75  +0.78%    -1.25%     369.98   29
  CBOT soy       859.25     3.25  +0.38%    -0.58%     873.80   42
  CBOT rice      $11.69   -$0.08  -0.72%    -1.10%     $11.61   61
  WTI crude      $36.87    $0.11  +0.30%    -0.46%     $38.21   48
  Currencies                                                
  Euro/dlr       $1.083   $0.000  +0.01%    -0.26%
  USD/AUD         0.719    0.000  +0.03%    -1.45%

Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

Source: Reuters (Reporting by Naveen Thukral; Editing by Joseph Radford)