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GRAINS-Corn sags on U.S. weather; spring wheat highest since 2014
* Corn slides on cooling temperatures as pollination nears
* Data shows smaller-than-expected net fund short in corn
* Spring wheat hits new 2-1/2 year high
* Soybeans climb on strong demand
(Rewrites to update prices, add quotes; changes byline,
previous dateline HAMBURG)
By Julie Ingwersen
CHICAGO, June 19 (Reuters) - U.S. corn futures fell more
than 1 percent on Monday on forecasts for mostly benign weather
in the Midwest as the crop heads into its pollination phase next
month, analysts said.
Wheat futures climbed as Minneapolis spring wheat futures
set fresh multi-year highs and soybeans also advanced.
As of 12:01 p.m. CDT (1701 GMT), Chicago Board of Trade July
corn was down 5 cents at $3.79 per bushel.
CBOT July wheat was up 7-3/4 cents at $4.73 a bushel
while MGEX July spring wheat was up 2 cents at $6.44-3/4 after
reaching $6.49-1/2, the highest spot price on a continuous chart
since December 2014.
CBOT July soybeans were up 4-1/2 cents at $9.43-1/2 a
Corn fell on outlooks for cooler temperatures in the Midwest
crop belt as the crop nears pollination, a crucial
yield-determining phase that usually occurs in July.
"You're getting closer to pollination and there is really no
heat in the forecast for the next two weeks. That's the
feature," said Dan Cekander, president of DC Analysis.
Ahead of the U.S. Department of Agriculture's weekly crop
progress report, due later on Monday, analysts surveyed by
Reuters expected the government to rate 68 percent of the U.S.
corn crop in good to excellent condition, up 1 percentage point
from a week ago, after beneficial showers.
Also bearish was weekly data released Friday from the U.S.
Commodity Futures Trading Commission showing that commodity
funds slashed their net short position in CBOT corn by more than
100,000 contracts in the week to June 13.
"Friday's CFTC Commitment of Traders report showed much
larger-than-expected short-covering had occurred during the week
reported," INTL FCStone chief commodities economist Arlan
Suderman write in a note to clients.
Wheat had support from concern about dry weather cutting
spring wheat yields.
Also, unlike corn, the CFTC's report on Friday showed funds
still held a large net short position in CBOT wheat futures,
leaving the market vulnerable to short-covering rallies.
Soybeans firmed on strong demand and technical buying as the
new-crop November contract broke through chart resistance
at its 50-day moving average.
"Soybeans are underpinned by continued good demand in U.S.
domestic markets and internationally," said Stefan Vogel, head
of agricultural commodity markets research at Rabobank.
"Prices are strong despite massive soybean harvests in South
America," Vogel said. "Exports from Brazil are running at a high
level but demand in the world market is strong and is able to
absorb these supplies."
CBOT prices as of 12:04 p.m. CDT (1704 GMT):
Net Pct Volume
Last change change
CBOT wheat WN7 472.75 7.50 1.6 84103
CBOT corn CN7 378.75 -5.25 -1.4 179144
CBOT soybeans SN7 943.50 4.50 0.5 72524
CBOT soymeal SMN7 302.50 1.60 0.5 31673
CBOT soyoil BON7 33.22 0.11 0.3 35109
NOTE: CBOT wheat, corn and soybeans shown in cents per
bushel, soymeal in dollars per short ton and soyoil in cents per
(Reporting by Julie Ingwersen in Chicago, Michael Hogan in
Hamburg and Naveen Thukral in Singapore; editing by David Clarke
and Grant McCool)
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