GRAINS-New-crop corn hits contract low on abundant global supplies

SYDNEY, July 21 (Reuters) – U.S. new-crop corn futures fell on Monday, extending two-day losses to more than 3 percent, to hit a fresh contract low as expectations of abundant global supplies offset geopolitical tensions in the Black Sea region.

FUNDAMENTALS

* Chicago Board Of Trade December corn was down 1.1 percent at $3.74-1/2 a bushel by 0028 GMT, having earlier touched $3.74-1/4 a bushel, a contract low. Corn fell 2.6 percent in the previous session.

* November fell 0.9 percent to $10.76 a bushel, having slid 0.8 percent on Friday.

* September wheat fell 0.4 percent to $5.30 a bushel, having closed down 3.4 percent on Friday.

* Investors were worried an escalation of the conflict between Ukraine and Russia, both major wheat producers, could affect grain shipments.

* U.S. Secretary of State John Kerry laid out what he called overwhelming evidence of Russian complicity in the shooting down of Malaysia Airlines flight MH17 as international horror deepened over the fate of the victims’ remains.

* However, wheat came under pressure from rising yields as the U.S. hard red winter wheat harvest moves into the central Plains and away from drought-hit areas farther south.

* A spell of warm, dry weather in Europe this week should allow harvesting to accelerate in France, a major exporter.

MARKET NEWS

* The dollar got off to a steady start on Monday as some calm returned to markets following an initial bout of risk aversion stemming from a flare up in geopolitical tensions.

* Oil prices eased in thin trade on Friday but notched their first weekly gain in a month due to heightened geopolitical risk after the downing of a Malaysian jetliner over eastern Ukraine and as Israeli ground troops advanced into Gaza.

* U.S. stocks rose on Friday, rebounding a day after the S&P 500 suffered its worst slide since April 10, with the three major indexes closing higher for the week.

DATA AHEAD (GMT)

0600 Germany

Producer prices

June

0800 Italy

Industrial orders

May

1230 U.S.

National activity index

June

Grains prices at 0028 GMT Contract

Last

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

530.00

-2.25 -0.42%

-1.49%

573.29 40 CBOT corn

374.50

-4.00 -1.06%

-3.17%

422.63 13 CBOT soy

1076.00

-9.25 -0.85%

-2.36%

1177.49 9 CBOT rice

$13.13

$0.01 +0.04%

+1.08%

$13.48 28 WTI crude

$102.87 -$0.26 -0.25%

+1.65%

$104.43 51 Currencies

Euro/dlr

$1.353 $0.000 +0.03%

+0.01% USD/AUD

0.939

0.000 -0.01%

+0.38% 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

Comments

explore

Stories from our other publications