Content ID

333057

GRAINS-Corn dips but still poised for monthly gain; soy lower, wheat up

(Recasts, updates prices, adds quotes, changes byline, changes dateline, previous PARIS/SINGAPORE)

By Julie Ingwersen

CHICAGO, Aug 31 (Reuters) - U.S. corn futures declined for a second session on Wednesday on profit-taking at the end of the month and mounting recession worries, but the market was on course for a steep monthly gain due to eroding U.S. and European crop prospects.

Soybean futures also fell. But wheat turned higher on technical buying and worries about shipments from war-torn Ukraine. Grain silos in Ukraine's second biggest port, Mykolaiv, were hit by Russian shelling of the city on Tuesday, causing a fire that was still burning on Wednesday, Ukraine's emergencies service said.

As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Trade December corn was down 7-1/2 cents at $6.69-3/4 per bushel. November soybeans were down 9-1/2 cents at $14.23 a bushel while CBOT December wheat was up 12-3/4 cents at $8.33 a bushel.

Corn was pressured as traders booked profits after the December contract hit a two-month high on Monday. A broad slide in commodity and financial markets also weighed on prices.

"The macro-environment remains negative for agriculture this week," said Charles Branch, head of agricultural commodities at Britannia Global Markets.

Wall Street slipped and U.S. crude oil prices sank on worries that tightening monetary policy around the world will hurt demand for goods and drag on the global economy.

Still, for the month, CBOT corn was on track for an 8% climb as drought threatened crop prospects in portions of the U.S. Midwest and Europe.

CBOT wheat was up 3% for the month, drawing support as the Northern Hemisphere harvest winds down.

"We're starting to get a post-harvest rally going," said Jack Scoville, vice president at Chicago-based Price Futures Group.

Soybean futures were lower Wednesday after a back-and-forth session as traders weighed expectations of a large U.S. harvest against signs of fresh export demand. The U.S. Department of Agriculture confirmed private sales of 167,000 tonnes of U.S. soybeans to China, the latest in a series of U.S. soybean sales announcements in the last two weeks. (Reporting by Julie Ingwersen in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Sherry Jacob-Phillips, Paul Simao and Jonathan Oatis)

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