GRAINS-Corn falls on forecasts of ideal harvest weather

SYDNEY, Oct 21 (Reuters) – U.S. corn futures fell on Tuesday as forecasts for dry weather fuelled expectations that harvesting would progress rapidly.

FUNDAMENTALS

* Chicago Board of Trade front-month corn fell 0.22 percent to $3.47-1/2 a bushel, having gained 0.1 percent in the previous session.

* Front-month soybeans were unchanged at $9.44-1/4 a bushel, after closing down 0.8 percent on Monday.

* Front-month wheat was steady at $5.13-1/2 a bushel, having finished 0.5 percent lower the day before.

* The U.S. Department of Agriculture, in a weekly report, said the corn harvest as of Sunday was 31 percent complete, below the five-year average of 53 percent for that date, and the soybean harvest was 53 percent complete, below the average of 66 percent.

* Traders had expected the corn harvest to be 33 percent complete, up from 24 percent a week ago, and the soybean harvest to be 55 percent complete, up from 40 percent a week ago.

* But forecasts for mostly dry conditions across the Corn Belt drove down prices early in the session. Prices had rallied in recent weeks on concerns about wet weather slowing the harvest of a record U.S. crop.

* U.S. wheat faces competition for export business on the world market, with Egypt buying 175,000 tonnes of French and Russian wheat in its last international wheat purchase on Oct. 10.

MARKET NEWS

* Major currencies traded in tight ranges on Monday with investors facing a dearth of new data and modest price changes in global markets, save for Japan where stocks rallied on possible public pension fund spending, which helped bring down the yen.

* Brent crude fell on Monday, dropping below $86 a barrel as worries about booming supply and sluggish demand pushed the global oil benchmark back towards last week’s four-year low. U.S. crude hovered below $83 a barrel.

DATA AHEAD (GMT)

0200 China

GDP

Q3

0200 China

Industrial output

Sep

0200 China

Retail sales

Sep

0200 China

Urban investment

Sep

1400 U.S.

Existing home sales

Sep

Grains prices at 0027 GMT Contract

Last

Change Pct chg Two-day chg MA 30 RSI CBOT wheat

513.50

0.00 +0.00%

-0.48%

495.22 61 CBOT corn

347.50

-0.75 -0.22%

+0.00%

364.94 56 CBOT soy

944.25

0.00 +0.00%

-0.79%

947.60 46 CBOT rice

$12.52

$0.02 +0.12%

-0.24%

$12.63 41 WTI crude

$82.75

$0.04 +0.05%

+0.00%

$89.40 24 Currencies

Euro/dlr

$1.280 $0.000 +0.00%

+0.29% USD/AUD

0.879

0.001 +0.10%

+0.53% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Joseph Radford)

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