Corn rises after deep losses, market eyes U.S. weather

In Commodity News 28/06/2016

Chicago corn edged higher on Monday as the market took a breather, after suffering its biggest weekly decline in three years, with investors watching the U.S. weather for a price direction.

Soybeans rose almost 1 percent after coming under pressure in the last session amid a broad selloff in commodities and financial markets after Britain voted to leave the European Union.

FUNDAMENTALS

* Corn lost more than 12 percent last week, its biggest weekly decline since June 2013 as improving weather across the U.S. Midwest prompted funds to liquidate their long positions.

* Soybeans gave up six percent last week while wheat dropped 3.4 percent.

* Investors in the grain markets will be closely watching a weekly crop progress report to be issued by the U.S. Department of Agriculture later on Monday.

* Large speculators cut their net long position in CBOT corn futures in the week to June 21, regulatory data released on Friday 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 cut their net long position in soybeans.

MARKET NEWS

* Asian stocks opened weaker and the British pound fell almost 2 percent in early Asian trade on Monday as markets struggled to shake off deep uncertainty sparked by Britain’s decision to leave the European Union.

    DATA AHEAD (GMT) 
1230 U.S. Trade balance May 
1345 U.S. Markit services PMI flash Jun

 Grains prices at 0100 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  465.00   0.00     +0.00%   +2.37%       478.73   27
 CBOT corn   387.75   3.25     +0.85%   +0.13%       410.41   29
 CBOT soy    1088.25  9.75     +0.90%   -1.20%       1105.19  39
 CBOT rice   11.05    $0.04    +0.32%   +2.17%       $11.36   31
 WTI crude   47.13    -$0.51   -1.07%   -5.95%       $48.79   38
 Currencies                                                   
 Euro/dlr    $1.101   -$0.011  -0.95%   -3.30%                
 USD/AUD     0.7407   -0.005   -0.68%   -2.64%                
 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 Michael Perry)