GRAINS-New-crop corn falls to near 2-week low on weather boost

* December corn falls to lowest level since April 26
    * Dry weather set to prompt rapid planting across U.S.
    * Wheat falls but crop damage caps losses, say traders

    By Colin Packham
    SYDNEY, May 9 (Reuters) - U.S. new-crop corn fell to a near
two-week low on Thursday as forecasts for dry weather across
U.S. Plains raised expectations that farmers will rapidly
increase corn seedings, currently at a 29-year low.
    Wheat fell, facing price pressure from the weakness in corn,
while soybeans edged higher for a third consecutive session on
tight U.S. stocks. The Chicago Board of Trade December corn contract, the most-actively traded contract, fell 0.8 percent to $5.27-3/4 a bushel by 0321 GMT, having hit a session low of $5.25-3/4 a bushel, the lowest level since April 26. "U.S. farmers are going to be jamming as much corn in the ground as they can in the next 10 days," said Andrew Woodhouse, grains analyst at Advance Trading Australasia. Old-crop July corn futures fell 0.32 percent to $6.31 a bushel after sliding 1.1 percent in the previous session. July wheat declined 0.39 percent to $7.03-1/4 a bushel, though traders said damage to the U.S. winter wheat crop provide a floor to losses. Wheat closed down 0.42 percent on Wednesday. July soybeans rose 0.11 percent to $13.92-1/4 a bushel, having closed up 0.62 percent in the previous session. WEATHER WEIGHS Better corn planting weather is expected in the U.S. Midwest over the next week to 10 days. The improved outlook for the 2013/14 crop has eased concerns ahead of the next U.S. Department of Agriculture monthly supply and demand report on Friday. A Reuters poll of 21 analysts forecast new-crop U.S. corn ending stocks of 1.993 billion bushels, the most since 2005 and up 166 percent from this season.
Old-crop corn prices continue to underpinned by tight 2012/13 supplies, with analysts anticipating a slight fall in the USDA estimate. The Reuters' poll pegged 2013 U.S. wheat production at 2.062 billion bushels, down nearly 10 percent from last year. The likely drop in production was due to drought and freeze damage to hard red winter wheat in the U.S. Plains. Grains prices at 0321 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 703.25 -2.75 -0.39% -0.81% 704.02 46 CBOT corn 631.00 -2.00 -0.32% -1.41% 632.22 52 CBOT soy 1392.25 1.50 +0.11% +0.72% 1360.68 68 CBOT rice $15.23 $0.00 +0.00% -1.81% $15.55 49 WTI crude $96.67 $0.05 +0.05% +1.10% $92.95 66 Currencies Euro/dlr $1.316 $0.001 +0.09% +0.66% USD/AUD 1.025 0.008 +0.76% +0.63% 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)

About the author



Stories from our other publications