Content ID

334322

GRAINS-Corn dips after 2 days of gains, slow U.S. harvest pace limits decline

SINGAPORE, Oct 4 (Reuters) - Chicago corn futures slid on Tuesday after two straight sessions of gains, although a slower-than-expected pace of U.S. harvest provided a floor under the market.

Wheat ticked higher with heightened Russia-Ukraine tensions renewing concerns over global food supplies.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) lost 0.2% to $6.79-3/4 a bushel, as of 0108 GMT. Wheat added 0.1% to $9.12-1/2 a bushel and soybeans gained 0.1% to $13.74-3/4 a bushel.

* The U.S. corn harvest was 20% complete as of Sunday, the U.S. Department of Agriculture (USDA) said in a weekly crop progress report on Monday, behind the average estimate in a Reuters analyst poll of 22% and the five-year average, also 22%.

* The soybean harvest was farther ahead at 22% complete, surpassing the average analyst estimate of 20% but behind the five-year average of 25%.

* Heightened tensions between Russia and Ukraine, the world's leading grain exporters, triggered worries over supplies.

* Ukrainian forces have broken through Russia's defences in the south of the country while expanding their rapid offensive in the east, seizing back more territory in areas annexed by Moscow and threatening supply lines for Russian troops.

* The escalation in Black Sea war came as the USDA said the 2022 U.S. wheat harvest was smaller than previously forecast and cut its crop assessment below analysts' expectations to 1.650 billion bushels.

* In a separate quarterly stocks report, the USDA on Friday reported U.S. corn inventories were below analysts' expectations and soybean inventories topped estimates. The larger-than-expected soybean stocks added pressure to a soy market already under pressure from competition from South American supplies.

* Commodity funds were net buyers of CBOT corn, soybean, soyoil and soymeal futures contracts on Monday and net sellers of wheat futures, traders said.

MARKET NEWS

* U.S. stocks rose sharply on the first day of trading of the fourth quarter as volatile swings continued to dominate markets, while the prospect of reduced supply pushed oil up nearly $4 a barrel.

DATA/EVENTS (GMT) 1400 US Factory Orders MM Aug (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Tip of the Day

Puncture spray cans

Spray can puncture The local scrapyard wouldn’t accept empty aerosol containers unless there was a hole in the can. So I glued a PVC cap to one end of a pipe... read more

Talk in Marketing

Most Recent Poll

Will you have enough on-farm storage for harvest?

I just want to see the responses
44% (28 votes)
Yes
39% (25 votes)
No, it’s going to be a bin-buster
8% (5 votes)
Maybe, depending on yields
5% (3 votes)
No, I am looking at new bins or temporary storage
5% (3 votes)
Total votes: 64
Thank you for voting.