SINGAPORE, Oct 28 (Reuters) – Chicago wheat futures lost more ground on Wednesday, falling for a second day following forecasts of much-needed rains in the U.S.grain belt.
Corn was little changed after slipping 1.3 percent in the last session as a lack of demand and near-record supplies from freshly harvested crops weighed on prices.
FUNDAMENTALS
-
U.S. wheat, which rallied sharply on Monday, has come under pressure from forecasts of rains later this week in that U.S.Plains that will provide relief to the winter crop.
-
Harvest pressure and sluggish exports are weighing on corn prices.This more than offset support from a strong cash market in the eastern Midwest.
-
U.S.grain warehouses were filling up so fast with a bumper harvest that they were storing soybeans and corn out in the open despite the risk of damage and even refusing crops from farmers without binding contracts.
-
Traders unwound spreads featuring long corn and short soybean positions as the market’s focus turned to slumping U.S. corn exports and news of imports of Brazilian corn arriving soon on the U.S.East Coast.
Meanwhile, soybean exports are accelerating. -
Commodity funds sold an estimated net 10,500 Chicago Board of Trade corn contracts on Tuesday, trade sources said.
The funds were net buyers of 5,000 soybean contracts and were net even in wheat. COMFUND/CBT -
U.S. farmers finished harvesting 75 percent of the corn crop as of Sunday while the soybean harvest was 87 percent complete, both ahead of average, the U.S.Department of Agriculture said on Monday.
MARKET NEWS
-
Asian stocks slipped early on Wednesday, taking cues from an overnight decline on Wall Street while a wait-and-see mood prevailed ahead of a policy statement from the U.S.Federal Reserve due later in the day.
DATA/EVENT AHEAD (GMT)
-
0700 Germany GfK consumer sentiment Nov
-
0700 Germany Import prices Sep
-
0745 France Consumer confidence Oct
-
1230 U.S. Trade data Sep
-
1800 Federal Reserve releases statement after policy meeting
Prices at 0052 GMT
-
Contract Last Change Pct chg Two-day chg MA 30 RSI
-
CBOT wheat 508.00 -1.25 -0.25% +3.57% 503.09 60
-
CBOT corn 380.25 0.25 +0.07% +0.13% 383.82 49
-
CBOT soy 891.00 -0.25 -0.03% -0.50% 886.96 47
-
CBOT rice $11.89 $0.01 +0.04% +0.30% $12.73 18
-
WTI crude $43.28 $0.08 +0.19% -1.59% $45.90 26
Currencies
-
Euro/dlr $1.103 $0.002 +0.15% -0.68%
-
USD/AUD 0.712 -0.009 -1.23% -1.12%
Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Richard Pullin)
