GRAINS-Corn slips on forecasts of better planting weather

SYDNEY, May 8 (Reuters) - U.S. corn futures slipped on
Wednesday, reversing gains from the previous session, as
forecasts for favourable planting weather weighed on prices. 
         
    FUNDAMENTALS  
    * Chicago Board Of Trade July corn fell 0.12 percent
to $6.39-1/4 a bushel, having gained 0.55 percent in the
previous session.
    * July wheat fell 0.28 percent $7.07 a bushel, having
closed up 0.9 percent on Tuesday. 
    * March soybeans were little changed at $13.81-1/2 a
bushel, having firmed 0.95 percent on Tuesday.
    * Traders readying for the next U.S. Department of
Agriculture monthly supply and demand report on Friday. 
    * Poor growing weather should result in a 9 percent drop in
	
U.S. 2013 winter wheat production from the previous year's crop, in spite of a 2 percent rise in planted acreage, analysts said ahead of a U.S. government report. * The average estimate of U.S. hard red winter wheat production among 15 analysts surveyed by Reuters was 776 million bushels, a potential seven-year low that compares with 1.004 billion bushels produced a year ago. * Stalled by rain and late-season snow last week, U.S. farmers have planted just 12 percent of their intended corn acres, the slowest pace since 1984, the U.S. Department of Agriculture said in a weekly report. * Better corn planting weather is seen for the next week to 10 days in the U.S. Midwest but conditions will be less than ideal with widespread rains expected beginning Wednesday and continue into the weekend. * USDA said 32 percent of the U.S. winter wheat crop was rated in good to excellent condition, down from 33 percent a week earlier and the lowest since 1996. The poorest ratings remained in the Plains states, which have struggled with drought as well as spring freeze damage. * 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. * Additional support for wheat was dry weather continuing 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. * In neighboring Russia, concern was centered on the south where continued dry weather could hurt yields in the country's main wheat export region. MARKET NEWS * Major currencies got off to a sleepy start in Asia on Wednesday, but the New Zealand dollar stood out after the central bank complained it was overvalued, prompting markets to briefly sell the kiwi. * Brent crude oil fell more than $1 on Tuesday as worries about market fundamentals curbed an early rise that had brought the price close to $106 a barrel on strong German data and concern about tension in the Middle East. * The Dow closed above 15,000 for the first time on Tuesday and the S&P 500 ended at another record high, extending the market's rally as more investors rushed to join the party and German industrial data beat expectations.
DATA/GMT 0200 China Exports yy Apr 0200 China Imports yy Apr 0200 China Trade balance Apr 1000 Germany Industrial output mm Mar 1430 U.S. EIA weekly crude stocks Weekly 1430 U.S. EIA weekly dist. stocks Weekly 1430 U.S. EIA weekly gasoline stk Weekly Grains prices at 0038 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 707.00 -2.00 -0.28% +0.60% 705.25 45 CBOT corn 639.25 -0.75 -0.12% +0.43% 635.19 51 CBOT soy 1381.50 -0.75 -0.05% +0.89% 1360.65 60 CBOT rice $15.43 $0.03 +0.19% -0.55% $15.56 59 WTI crude $95.41 -$0.21 -0.22% -0.78% $92.90 61 Currencies Euro/dlr $1.308 $0.000 +0.04% +0.06% USD/AUD 1.017 -0.001 -0.08% -0.74% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Ed Davies)

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