* Corn falls as record U.S. harvest boosts supply
* Soybeans ease for the 1st time in 7 sessions
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Nov 14 (Reuters) - Chicago corn lost more ground
on Thursday, falling for a third consecutive session as the
harvest of a record-large crop in the United States boosts
U.S. soybean futures also eased, dropping for the first time
in seven sessions after Chinese demand pushed the market to its
highest in six weeks.
"Global corn inventories are increasing to very comfortable
levels after being drastically tight over the past 12 months,"
said Luke Mathews, a commodities strategist at the Commonwealth
Bank of Australia.
Corn was also being affected by concerns over a possible
reduction in the U.S. government's 2014 quota of corn-based
ethanol fuel used in gasoline.
The U.S. Environmental Protection Agency could soon revise
its Renewable Fuel Standard, or RFS, by lowering the amount of
corn-based ethanol required in 2014 for blending into gasoline.
Documents leaked earlier this year indicated the government
might lower its corn-based ethanol requirement to 13 billion
gallons, versus the 14.4 billion called for in the 2007 RFS law.
"If that were to occur than it is going to provide a more
subdued environment for U.S. corn demand which will flow through
to the oilseed complex and wheat complex," said Williams.
Chicago Board Of Trade front-month corn fell 0.1
percent to $4.29-1/4 a bushel by 0237 GMT, after closing down
0.5 percent on Wednesday. January soybeans lost 0.5
percent to $13.08-1/2 a bushel.
Crop forecaster Lanworth on Wednesday slightly raised its
forecast for the 2013/14 U.S. corn crop and trimmed its outlook
for U.S. soybean production.
Lanworth said it expected a U.S. corn crop of 13.944 billion
bushels, compared to its outlook of 13.938 billion bushels
issued a week ago.
For the U.S. soybean crop, Lanworth lowered its outlook to
3.287 billion bushels from 3.293 billion due to the USDA's
900,000 acre cut to soybean plantings in "minor production
The soybean market, which climbed to a six-week top of
$13.19-3/4 a bushel on Tuesday, is also facing pressure from
"The story around the bean market is of strong demand but at
the same time production prospects look very good globally and
we are not likely to see shortage of beans," said Mathews.
Commodity funds sold a net 5,000 CBOT corn contracts on
Wednesday, trade sources said. They were even in wheat and
bought 2,000 soybean.
Prices at 0237 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 647.25 1.75 +0.27% +0.15% 678.66 19
CBOT corn 429.25 -0.50 -0.12% -1.27% 435.53 46
CBOT soy 1308.50 -6.50 -0.49% +0.58% 1275.37 67
CBOT rice $15.53 -$0.07 -0.48% -0.67% $15.33 64
WTI crude $93.78 -$0.10 -0.11% +0.80% $98.18 37
Euro/dlr $1.347 $0.006 +0.46% +0.73%
USD/AUD 0.936 0.000 +0.04% -0.23%
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)