Content ID

333067

GRAINS-Corn drops for 3rd session on recession fears, wheat eases

SINGAPORE, Sept 1 (Reuters) - Chicago corn slid for a third consecutive session on Thursday as growing concerns over a global recession weighed on commodity markets, although losses were limited by hot weather curbing U.S. and European crop prospects.

Wheat and soybeans edged lower.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) slid 0.3% to $6.68-1/2 a bushel, as of 0018 GMT and wheat gave up 0.7% to $8.26 a bushel.

* Soybeans lost 0.1% to $14.21-1/4 a bushel.

* Global markets are being weighed down by fears of recession which dragged down stocks and commodities on Wednesday.

* However, expectations of lower U.S. production is supporting corn prices.

* Advisory service Pro Farmer last week estimated the U.S. corn yield at 168.1 bushels per acre, well below the USDA's forecast of 175.4. The Pro Farmer harvest projection followed a four-day Midwest crop tour that showed the effects of hot, dry weather in some areas.

* For soybeans, Pro Farmer predicted a U.S. crop of 4.535 billion bushels, close to the USDA's August forecast of 4.531 billion bushels.

* Worries about shipments from war-torn Ukraine is likely to support corn and wheat futures.

* 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.

* The U.S. Department of Agriculture (USDA) confirmed private sales of 167,000 tonnes of U.S. soybeans to China, the latest in a series of U.S. soy sales announcements in the last two weeks.

* The USDA on Wednesday said it would not publish weekly export sales data for crops like corn, soybeans and wheat until Sept. 15 at the earliest, leaving grain traders in the dark about overseas demand.

* It is struggling to launch a new reporting system for the data, which has a week-long delay and is analysed by traders and farmers.

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

MARKET NEWS

* World stocks fell again on Wednesday, as expectations that central banks on both sides of the Atlantic will likely raise borrowing costs again next month soured sentiment and stoked recession fears, which dragged oil prices below $90 a barrel.

DATA/EVENTS (GMT) 0030 Japan JibunBK Mfg PMI Final SA Aug 0130 Australia Owner-Occp'd Hous'g Fin MM July 0130 Australia Invest Hous'g Fin MM July 0130 Australia Capital Expenditure Q2 0145 China Caixin Mfg PMI Final Aug 0500 India S&P Global Mfg PMI Aug 0600 UK Nationwide house price MM, YY Aug 0750 France S&P Global Mfg PMI Aug 0755 Germany S&P Global/BME Mfg PMI Aug 0800 EU S&P Global Mfg Final PMI Aug 0830 UK S&P GLBL/CIPS Mfg Final PMI Fnl Aug 0900 EU Unemployment Rate July 1230 US Initial Jobless Clm Weekly 1345 US S&P Global Mfg PMI Final Aug 1400 US ISM Manufacturing PMI Aug (Reporting by Naveen Thukral; editing by Uttaresh.V)

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