GRAINS-Corn edges lower after 3 pct gain on China demand

SYDNEY, May 23 (Reuters) - U.S. corn fell on Thursday as
traders banked profits after the grain surged nearly 3 percent
in the previous session on news of strong demand from China.
         
    FUNDAMENTALS  
    * Chicago Board Of Trade July corn fell 0.38 percent
to $6.56 a bushel, having gained 2.89 percent in the previous
session.
    * July soybeans were little changed at $14.93-1/4 a
bushel, having firmed 1.08 percent on Wednesday.
    * July wheat fell 0.11 percent to $6.87-3/4 a bushel
after firming 1.18 percent in the previous session.
    * Private exporters reported the sale of 360,000 tonnes of
U.S. corn to China, the U.S. Agriculture Department said on
	
Wednesday morning. * Another 180,000 tonnes was sold to an unidentified buyer, which traders said was likely China since it is the only country that typically buys such large quantities at one time. * The U.S. Energy Information Administration said on Wednesday that weekly U.S. ethanol output rose 18,000 barrels per day to 875,0000 barrels and stocks fell to 16.19 million barrels. * Lingering concerns about crop development this summer added support to corn, even after U.S. farmers' most active planting week ever allowed them to finish the bulk of their corn seeding. * USDA pegged corn planting at 71 percent complete as of Sunday, up from 28 percent a week earlier. * Much of the corn was seeded after May 15. That raises the risk of the crop pollinating this summer under the stress of high temperatures, which could reduce yields. * Additionally, some rain showers could cause temporary delays to the final planting push during the next 10 days. * Soybeans under pressure from weakening cash market. Soybean spot basis bids continued to plunge around the U.S. Midwest on Wednesday as a fifth straight day of gains in futures spurred more sales from farmers and commercial elevators, dealers said. * Scores of grains ships were delayed in and around
Argentina on Wednesday due to a three-day-old strike by port workers that threatens to bog down exports at a time of heightened world demand for South American soy and corn, sources said. MARKET NEWS * The dollar hovered at a near three-year high against a basket of major currencies in Asia on Thursday, having risen broadly as Treasury yields jumped on the prospect that the Federal Reserve might scale back its stimulus programme this year. * Oil prices fell on Wednesday as a rise in U.S. gasoline inventories prompted selling, then crude extended losses in late trading after minutes from a Federal Reserve policy meeting sent U.S. stock markets down. * U.S. stocks fell on Wednesday with the S&P 500 posting its biggest decline in three weeks, after minutes from the latest U.S. Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting. DATA/EVENTS (GMT) 0145 China HSBC Manufacturing Flash PMI 0658 France Markit Manufacturing Flash PMI 0728 Germany Markit Manufacturing Flash PMI 0758 Euro zone Markit Manufacturing Flash PMI 1230 U.S. Weekly jobless claims 1258 U.S. Markit Manufacturing Flash PMI 1400 U.S. New home sales 1400 Euro zone Consumer confidence European Central Bank chief Mario Draghi speaks
Grains prices at 0016 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 687.75 -0.75 -0.11% +1.07% 703.98 43 CBOT corn 656.00 -2.50 -0.38% +2.50% 641.12 45 CBOT soy 1493.25 -1.00 -0.07% +1.01% 1398.23 60 CBOT rice $15.35 $0.01 +0.03% +1.09% $15.36 57 WTI crude $94.03 -$0.25 -0.27% -2.22% $93.09 42 Currencies Euro/dlr $1.283 -$0.003 -0.22% -0.60% USD/AUD 0.965 -0.004 -0.43% -1.50% 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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