GRAINS-Corn firms for first time in six sessions; fine weather caps gains

SYDNEY, July 8 (Reuters) – U.S. new-crop corn futures rose for the first time in six sessions on Tuesday as prices rebounded off a contract low, although forecasts for near-ideal crop weather across much of the Midwest kept a lid on gains.

FUNDAMENTALS

* Chicago Board Of Trade September corn rose 0.3 percent to $4.07-1/4 a bushel, having slid 2.2 percent in the previous session when prices hit a low of $3.97 a bushel, a contract low.

* September wheat rose 0.5 percent to $5.59-1/2 a bushel, having closed down 4 percent on Monday when prices hit a low of $5.56 a bushel, a contract low.

* November soybeans rose 0.3 percent to $11.28-1/2 a bushel, having closed down 0.7 percent on Monday as prices hit a low of $11.16 a bushel, the lowest since February 12.

* U.S. crop conditions held steady, with soybean ratings at a 20-year high and corn ratings at a 15-year high, during the past week with ample soil moisture and warm weather providing near ideal conditions for growth.

* The U.S. Agriculture Department’s weekly crop progress and conditions report released on Monday pegged the soybean crop as 72 percent good to excellent and corn at 75 percent good to excellent. Both ratings were in line with market expectations.

* Plentiful soil moisture and warm weather throughout much of the Midwest posed little threat to developing corn and soybean crops. Corn is entering its critical pollination stage of development this month.

* USDA also said that spring wheat ratings were 70 percent good to excellent, unchanged from a week ago. Winter wheat was rated 31 percent good to excellent, 1 percentage point higher than a week earlier, and the crop was 57 percent harvested.

* Germany’s DBV farmers’ association estimated on Monday the 2014 winter wheat crop would reach almost 25 million tonnes, versus 24.6 million in 2013.

MARKET NEWS

* The dollar started trade in Asia on the back foot on Tuesday having run out of puff near a two-week high, giving the euro a chance to get over an unexpected slump in German industrial output.

* Brent and U.S. crude oil futures fell on Monday to the lowest levels in a month as Libya prepared to resume oil exports from two ports closed nearly a year, and as supply from Iraq remained unaffected by violence sweeping the OPEC country.

* U.S. stocks dipped on Monday, retreating from last week’s record levels as investors hesitated to make big bets before the start of earnings season.

DATA AHEAD (GMT)

0600 Germany

Trade data

May

0645 France

Trade data

May

1130 U.S.

NFIB business optimism index

June

1900 U.S.

Consumer credit

May

Grains prices at 0023 GMT Contract

Last

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

559.50

2.75 +0.49%

-3.45%

596.50 25 CBOT corn

407.25

1.00 +0.25%

-1.93%

442.68 16 CBOT soy

1128.50

3.00 +0.27%

-0.44%

1233.21 21 CBOT rice

$13.64

$0.03 +0.18%

+0.44%

$13.67 46 WTI crude

$103.41 -$0.12 -0.12%

-0.62%

$104.73 25 Currencies

Euro/dlr

$1.361 $0.000 +0.03%

+0.11% USD/AUD

0.937

0.000 +0.02%

+0.16% 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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