You are here

GRAINS-Corn, wheat slide on profit-taking as U.S. corn seeding winds down

(Recasts; updates prices, adds quotes; changes byline, dateline, previous PARIS/SINGAPORE) By Julie Ingwersen CHICAGO, June 18 (Reuters) - U.S. corn futures dropped on Tuesday as government data showing a rain-delayed planting campaign was nearing an end encouraged a pause in a rally that took prices to a five-year high a day earlier. Wheat futures fell more than 2% on profit-taking and competition for global export business. Soybeans were choppy, supported at times by ongoing U.S. planting delays and renewed optimism about U.S.-China trade talks. As of 12:47 p.m. CDT (1747 GMT), Chicago Board of Trade July corn was down 6-1/4 cents at $4.48-1/2 per bushel, its biggest daily decline since June 5. CBOT July wheat was down 11-1/4 cents at $5.28-1/4 a bushel while July soybeans were up 1/2 cent at $9.13-1/4 a bushel. Corn halted a five-session rally, a day after the U.S. Department of Agriculture said the 2019 U.S. crop was 92% planted, matching trade expectations. The USDA rated 59% of the crop in good to excellent condition, unchanged from the week before. "Corn planting is virtually done. We won't see a lot more acres," said Brian Hoops, president of Midwest Market Solutions. Traders booked profits after the July contract hit $4.64-1/4 on Monday, the highest for a most-active contract since June 2014. Wheat declined after the July contract on Monday touched a six-month top. A firmer dollar, which tends to make U.S. grains less attractive on the world market, added pressure. Traders "don't like the lack of competitiveness in U.S. corn and wheat. So I guess we are focusing on the demand side, with the market kind of overbought," said Dan Cekander, president of DC Analysis. Traders shrugged off support from a slow U.S. winter wheat harvest pace. The USDA said the harvest was 8% complete by Sunday, lagging trade expectations and the five-year average of 20%. Soybean found support as U.S. farmers struggled to plant saturated fields. The USDA said soybean seeding was 77% complete by Sunday, behind the five-year average of 93%. Analysts noted that more than 19 million acres of soybeans were left to plant, given the USDA's 2019 seedings projection of 84.6 million acres. "You've got more rains coming in the next week. I don't know how you get the rest planted," said Roy Huckabay with Linn & Associates, a Chicago brokerage. CBOT soybean futures firmed after U.S. President Donald Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks between the two countries were set to restart ahead of time. China is the world's biggest soy buyer, but its imports of U.S. soybeans have been stalled since the middle of 2018 due to trade tensions. CBOT soyoil futures rose as traders digested Monday's monthly crush report from the National Oilseed Processors Association, Cekander said. The NOPA report showed U.S. processors crushed fewer soybeans than expected in May, tightening soyoil supplies, while soyoil ending stocks fell more than expected. CBOT prices as of 12:50 p.m. CDT (1750 GMT): Last Net Pct Volume change change CBOT wheat WN9 528.00 -11.50 -2.1 50557 CBOT corn CN9 448.25 -6.50 -1.4 184905 CBOT soybeans SN9 913.25 0.50 0.1 118515 CBOT soymeal SMN9 321.90 -2.40 -0.7 40045 CBOT soyoil BON9 28.41 0.27 1.0 61465 NOTE: CBOT July wheat, corn and soybeans shown in cents per bushel, July soymeal in dollars per short ton and July soyoil in cents per lb. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Ed Osmond and Rosalba O'Brien)

© Copyright Thomson Reuters 2019. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Talk in Marketing

Most Recent Poll

Did you apply for prevent plant this year?