GRAINS-Corn extends two-day losses to 2 pct, near 4-month low

SYDNEY, June 10 (Reuters) – U.S. corn futures eased on Tuesday, extending two-day losses to 2 percent, weighed down by forecasts for favorable weather across the U.S Midwest and Chinese restrictions on the import of a corn-based feed ingredient.

FUNDAMENTALS

* Chicago Board Of Trade July corn fell 0.3 percent to $4.49-1/2 a bushel, having slid 1.7 percent in the previous session when prices hit a low of $4.45-1/2 a bushel, the lowest since February 3.

* July soybeans rose 0.2 percent to $14.59-3/4 a bushel, having closed unchanged on Monday.

* July wheat rose 0.5 percent to $6.15-1/2 a bushel, having closed down 0.9 percent on Monday.

* China has stopped issuing permits for imports of distillers dried grains (DDGs) from top exporter the United States on concerns they might contain an unapproved genetically-modified organism (GMO), traders said, sending U.S. prices tumbling.

* The U.S. Department of Agriculture’s weekly crop report rated 75 percent of the U.S. corn crop in good to excellent condition, down from 76 percent a week earlier but still well above the five-year average of 68 percent.

* The range of trade estimates was 75 to 78 percent good to excellent.

* USDA rated 74 percent of the soybean crop as good to excellent, topping an average of analyst estimates for 72 percent.

* Argentine port workers began a protest on Monday that halted grain shipments from the Rosario hub at the height of the soy harvest season.

* USDA pegged 71 percent of the U.S. spring wheat at good to excellent, while 30 percent of the winter crop was seen as good to excellent.

* USDA said 80 percent of the U.S. spring wheat has emerged, compared with a five-year average of 82 percent.

MARKET NEWS

* The dollar held steady versus a basket of major currencies on Tuesday, clinging to gains made the previous day thanks to higher U.S. bond yields after last week’s solid U.S. jobs report.

* Brent crude rose on Monday, gaining over $1 to surpass $110 a barrel for the first time in June, while U.S. crude rose by nearly $2, as strong Chinese and U.S. data pointed to healthy economic growth and higher demand for oil from the world’s top two consumers.

* The Dow and S&P 500 ended at record highs again on Monday as more deal news raised enthusiasm for stocks, though Wall Street’s fear gauge advanced.

DATA AHEAD (GMT)

0130 China

Producer prices

May

0130 China

Consumer prices

May

0645 France

Industrial output

April

0900 Italy

Final Q1 GDP

1130 U.S.

NFIB business optimism index

May

1400 U.S.

Wholesale inventories

April

Grains prices at 0044 GMT Contract

Last

Change Pct chg MA 30 RSI CBOT wheat

615.50

3.00 +0.49%

613.18 32 CBOT corn

449.50

-1.50 -0.33%

603.56 29 CBOT soy

1459.75

2.75 +0.19% 1162.89 33 CBOT rice

$14.15

$0.00 +0.00%

$14.42 14 WTI crude

$104.48

$0.07 +0.07%

$99.00 70 Currencies

Euro/dlr

$1.359 $0.064 +4.98%

USD/AUD

0.934 -0.102 -9.84%

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)

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