GRAINS-Corn falls as planting expectations drag, USDA report supports old-crop

* Mkt expects rapid corn planting as dry weather forecast
    * Old-crop corn prices supported ahead of next USDA report
later in wk
    * Wheat drops despite signs of crop stress in key exporting

    By Colin Packham
    SYDNEY, May 8 (Reuters) - U.S. new-crop corn futures fell on
Wednesday as expectations for an increase in planting in the
coming days reversed gains from the previous session, though the
overall slow pace of sowing underpinned old-crop prices ahead of
a key U.S. Department of Agriculture supply and demand forecast.
    Wheat fell after firming in the previous session, while
soybeans rose for the second day. The Chicago Board of Trade most-active December corn contract had dropped 0.37 percent to $5.37-1/4 a bushel by 0350 GMT, after closing little changed on Tuesday. Old-crop July corn futures climbed 0.2 percent to $6.41-1/4 a bushel after firming 0.55 percent in the previous session. "There will be a window of dry weather in the coming days where farmers can plant," said Joyce Liu, an analyst at Phillip Futures. Analysts said old-crop prices are being supported by position-squaring ahead of the next USDA monthly supply and demand report on May 10. "We know that corn stocks are pretty tight and with the delayed planting, we may see stocks drawn down even further," said Liu. July wheat declined 0.14 percent to $7.08 a bushel after firming 0.9 percent on Tuesday. July soybeans rose 0.47 percent to $13.88-3/4 a bushel, having closed up 0.95 percent in the previous session. BETTER WEATHER Corn and wheat prices continued to be pressured by forecasts for improved crop weather. Forecasters said drier weather in the northern Midwest should help boost seedings that have fallen well behind the average pace of planting. U.S. farmers have planted just 12 percent of their intended
corn acres, the slowest pace since 1984, USDA said in a weekly report on Monday. Analysts said any delays past mid-May would encourage farmers to switch corn acreage to soybeans, despite oilseed planting also falling well behind schedule. Soybean planting was 2 percent complete by Sunday, tied with 1983 and 1993 for the second-slowest place by early May, following a 1984 record of 1 percent. Traders said U.S. spring wheat planting would also be boosted by improved crop weather, adding pressure to prices, despite signs of yield losses in major wheat producing countries. Seedings of spring wheat, most of which is high-quality milling wheat produced in the northern Plains, continued to lag due to cold and wet conditions. Dry weather continues to delay planting in Australia's eastern grain belt, although output in the key western wheat region was set to rebound after favorable rain. Yields of Ukrainian spring barley and spring wheat may fall as much as 30 percent if no rain falls on dry fields in the next two weeks, a senior weather forecaster said on Tuesday, ID:nL6N0DO251] Elsewhere, continued dry weather in Russia's southern crop growing regions could hurt grain production and yields, potentially dashing Russia's plans to return as a major wheat exporter this year, experts said on Monday.
Grains prices at 0348 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 708.00 -1.00 -0.14% +0.75% 705.28 47 CBOT corn 641.25 1.25 +0.20% +0.75% 635.26 51 CBOT soy 1388.75 6.50 +0.47% +1.42% 1360.89 65 CBOT rice $15.45 $0.06 +0.36% -0.39% $15.56 59 WTI crude $95.83 $0.21 +0.22% -0.34% $92.92 63 Currencies Euro/dlr $1.309 $0.001 +0.10% +0.12% USD/AUD 1.018 0.000 -0.01% -0.67% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

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