Content ID

333768

GRAINS-Corn edges higher as USDA crop report fans supply concerns

Sept 20 (Reuters) - U.S. corn futures edged higher in early Asian trading on Tuesday following a weekly U.S. Department of Agriculture (USDA) crop progress report that showed harvest lagging behind average analyst estimate and fuelled concerns over global supply.

Wheat rose, while soybean was flat.

Trading was muted ahead of a slew of central bank meetings this week led by the U.S. Federal Reserve, which is likely to raise interest rates by 75 basis points.

FUNDAMENTALS

* The most-traded corn contract on the Chicago Board of Trade (CBOT) was up 0.2% at $6.79-3/4 a bushel, as of 0036 GMT.

* CBOT wheat edged up 0.1% to $8.31-1/2 a bushel, while CBOT soybeans held its ground at $14.61 a bushel.

* The U.S. corn harvest was 7% complete, as of Sunday, the USDA said, below the average estimate in a Reuters analyst poll of 10% and just behind the five-year average of 8%.

* U.S. soy harvest was 3% complete, lagging the average analyst estimate of 5% and the five-year average, also 5%.

* Condition ratings for both corn and soybeans declined, the report showed, although analysts on average had expected no change.

* As for wheat, the USDA said 21% of the crop had been seeded as of Sunday, ahead of the average analyst estimate of 20% and the five-year average of 17%.

* Ukraine expects a 2022 grain crop of 50 million-52 million tonnes, unchanged from the previous estimate and down from 86 million tonnes last year.

* Russian agriculture consultancy IKAR has raised its forecast for Russia's 2022 wheat crop by 2 million tonnes to 99 million tonnes.

MARKET NEWS

* World stock markets remained on edge and the dollar maintained its firm tone, given expectations that the Fed would maintain its aggressive tightening path until next year to contain stubbornly high inflation.

DATA/EVENTS (GMT)

0115 China Loan Prime Rate 1Y/5Y Sep

1230 US Housing Starts Number Aug

The U.S. Federal Reserve's Federal Open Market Committee starts its two-day meeting on interest rates (to Sept. 21) (Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)

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

Read more about
Loading...

Talk in Marketing