GRAINS-Corn rebounds, gains capped by U.S. crop report

SYDNEY, July 16 (Reuters) – U.S. new-crop corn futures rose on Wednesday, rebounding from losses of more than 1 percent in the previous session when the contract hit a all-time low, though gains were capped by the U.S. Department of Agriculture pegging the crop condition at the best in 20 years.

FUNDAMENTALS

* Chicago Board Of Trade December corn rose 0.39 percent to $3.83-1/4 a bushel, having slid 1.4 percent in the previous session when prices hit a contract low of $3.78-1/4 a bushel.

* September wheat rose 0.33 percent to $5.39-1/2 a bushel, having closed little changed in the previous session.

* November soybeans unchanged at $10.86-1/4 a bushel, having firmed 1 percent on Tuesday.

* The U.S. Department of Agriculture, in a weekly report on Monday, unexpectedly raised its condition rating for the U.S. corn crop by 1 percentage point to 76 percent good to excellent. Condition ratings for soybeans held steady at 72 percent good to excellent, with both crops off to their best start since 1994.

* The National Oilseed Processors Association on Tuesday said its U.S. members crushed a smaller-than-expected 118.718 million bushels of soybeans in June, down 7.8 percent from May and nearly 800,000 bushels below the average trade estimate.

* Importers are cautious about booking deals for U.S. corn because they think prices will continue to decline, traders said. However, private exporters struck deals to sell 120,000 tonnes of U.S. soybeans to top importer China for delivery in the 2014-15 marketing year, which will start on Sept. 1.

MARKET NEWS

* The dollar clung to modest gains early on Wednesday after bulls latched onto a comment by the head of the Federal Reserve that rates could rise sooner if employment continued to improve, while strong inflation sent sterling to a six-year high.

* Oil prices dropped by as much as $2 on Tuesday, deepening their biggest slide this year as rising Libyan supplies and downbeat economic data sharpened concerns the global market was heading into a near-term glut.

* U.S. stocks pulled back on Tuesday after Federal Reserve Chair Janet Yellen and her fellow Fed policymakers raised concerns about “substantially stretched valuations” in some sectors.

DATA/EVENTS AHEAD (GMT)
     0200   China        Q2 GDP
     0200   China        Industrial output              June
     0200   China        Retail sales                   June
     0200   China        Urban investment               June
     0900   Euro zone    Eurostat trade                 May
     1315   U.S.         Industrial output              June
     1400   U.S.         NAHB housing market index      July 
     1400   U.S.         Federal Reserve Chair Janet Yellen
                         delivers the semi-annual monetary
                         policy report before the House 
                         Financial Services Committee 
        
  Grains prices at  0055 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     539.50     1.75  +0.33%    +2.57%     580.73   41
  CBOT corn      383.25     1.50  +0.39%    -0.39%     429.67   9
  CBOT soy      1086.25     0.00  +0.00%    +1.05%    1196.80   7
  CBOT rice      $12.90    $0.03  +0.23%    -2.31%     $13.51   14
  WTI crude     $100.20    $0.24  +0.24%    -0.62%    $104.45   23
  Currencies                                                
  Euro/dlr       $1.356  -$0.001  -0.05%    -0.40%
  USD/AUD         0.936   -0.001  -0.09%    -0.37%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Jacqueline Wong)

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