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GRAINS-Wheat, corn jump ahead of USDA data; soybeans plumb new low
(Updates prices; changes byline, dateline, previous HAMBURG)
By Michael Hirtzer
CHICAGO, June 12 (Reuters) - U.S. wheat and corn futures
climbed as much as 1 percent on Tuesday while soybeans turned
slightly higher after touching the lowest levels since August as
traders squared up positions ahead of a U.S. Department of
Agriculture supply and demand report.
Analysts polled by Reuters expected the USDA at 11 a.m. CDT
(1600 GMT) to make only minor adjustments to U.S. and global
grain and soy supplies estimates, including a small increase in
U.S. all-wheat production.
Grain prices stabilized after recent steep declines as the
United States-North Korea summit in Singapore stoked
expectations of easing trade tensions between the United States
and China, potentially boosting exports.
"There is a bounce from the low levels today ... There is
hope that reduced political tension in Asia could be positive
for the U.S./China trade dispute, especially for the exports of
U.S. soybeans to China, even though the Singapore summit was not
directly about China," said Charles Clack, agricultural
commodity analyst at Rabobank.
Chicago Board of Trade July corn futures were up 5
cents to $3.72-1/4 per bushel and CBOT July wheat up 2-3/4
cents to $5.17-1/4 a bushel as of 10:33 a.m. CDT (1533 GMT).
CBOT July soybeans were 1 cent higher at $9.54-3/4,
recovering from their earlier multimonth low of $9.52.
Prices for each commodity had been on a downward trajectory
due to both good U.S. growing conditions for corn and soy, and
trade tensions with top buyers of American commodities including
China, Mexico and Canada.
USDA late on Monday reduced good-to-excellent crop condition
ratings for the corn and soy crops by 1 percentage point but the
ratings still are some of the best in years while weekend
rainfall in the Midwest also benefited crops.
"The market's weather worries are still with us, even if
they have been somewhat alleviated since late last week," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia.
(Additional reporting by Michael Hogan in Hamburg and Naveen
Thukral in Singapore
Editing by Marguerita Choy)
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