SYDNEY, May 23 (Reuters) - U.S. corn fell on Thursday as
traders banked profits after the grain surged nearly 3 percent
in the previous session on news of strong demand from China.
         
    FUNDAMENTALS  
    * Chicago Board Of Trade July corn fell 0.38 percent
to $6.56 a bushel, having gained 2.89 percent in the previous
session.
    * July soybeans were little changed at $14.93-1/4 a
bushel, having firmed 1.08 percent on Wednesday.
    * July wheat fell 0.11 percent to $6.87-3/4 a bushel
after firming 1.18 percent in the previous session.
    * Private exporters reported the sale of 360,000 tonnes of
U.S. corn to China, the U.S. Agriculture Department said on
	

		

			
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Wednesday morning. 
    * Another 180,000 tonnes was sold to an unidentified buyer, 
which traders said was likely China since it is the only country
that typically buys such large quantities at one time.
    * The U.S. Energy Information Administration said on
Wednesday that weekly U.S. ethanol output rose 18,000 barrels
per day to 875,0000 barrels and stocks fell to 16.19 million
barrels. 
    * Lingering concerns about crop development this summer
added support to corn, even after U.S. farmers' most active
planting week ever allowed them to finish the bulk of their corn
seeding. 
    * USDA pegged corn planting at 71 percent complete as of
Sunday, up from 28 percent a week earlier. 
    * Much of the corn was seeded after May 15. That raises the
risk of the crop pollinating this summer under the stress of
high temperatures, which could reduce yields.
    * Additionally, some rain showers could cause temporary
delays to the final planting push during the next 10 days.
    * Soybeans under pressure from weakening cash market.
Soybean spot basis bids continued to plunge around the U.S.
Midwest on Wednesday as a fifth straight day of gains in futures
spurred more sales from farmers and commercial elevators,
dealers said.
    * Scores of grains ships were delayed in and around
	

		

			
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Argentina on Wednesday due to a three-day-old strike by port
workers that threatens to bog down exports at a time of
heightened world demand for South American soy and corn, sources
said. 
         
    MARKET NEWS  
    * The dollar hovered at a near three-year high against a
basket of major currencies in Asia on Thursday, having risen
broadly as Treasury yields jumped on the prospect that the
Federal Reserve might scale back its stimulus programme this
year.  
    * Oil prices fell on Wednesday as a rise in U.S. gasoline
inventories prompted selling, then crude extended losses in late
trading after minutes from a Federal Reserve policy meeting sent
U.S. stock markets down.  
    * U.S. stocks fell on Wednesday with the S&P 500 posting its
biggest decline in three weeks, after minutes from the latest
U.S. Federal Reserve meeting showed some officials were open to
tapering large-scale asset purchases as early as at the June
meeting.  
    
    DATA/EVENTS (GMT) 
0145  China     HSBC Manufacturing Flash PMI     
0658  France    Markit Manufacturing Flash PMI   
0728  Germany   Markit Manufacturing Flash PMI  
0758  Euro zone Markit Manufacturing Flash PMI  
1230  U.S.      Weekly jobless claims            
1258  U.S.      Markit Manufacturing Flash PMI  
1400  U.S.      New home sales                   
1400  Euro zone Consumer confidence             
                European Central Bank chief Mario Draghi speaks 
    
	

		

			
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  Grains prices at  0016 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     687.75    -0.75  -0.11%    +1.07%     703.98   43
  CBOT corn      656.00    -2.50  -0.38%    +2.50%     641.12   45
  CBOT soy      1493.25    -1.00  -0.07%    +1.01%    1398.23   60
  CBOT rice      $15.35    $0.01  +0.03%    +1.09%     $15.36   57
  WTI crude      $94.03   -$0.25  -0.27%    -2.22%     $93.09   42
  Currencies                                                
  Euro/dlr       $1.283  -$0.003  -0.22%    -0.60%
  USD/AUD         0.965   -0.004  -0.43%    -1.50%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Richard Pullin)