GRAINS-Corn drops to lowest since December 2020, wheat falls for 4th session
SINGAPORE, Aug 16 (Reuters) – Chicago corn futures lost more ground on Wednesday, with the market hitting its lowest since December 2020 as expectations of bumper production in the United States continued to drive prices lower.
Wheat fell 1% to its weakest in two-and-a-half months, while soybeans were largely unchanged.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board Of Trade (CBOT) Cv1 was down 0.3% at $4.74-1/4 a bushel, as of 0014 GMT, after hitting its lowest since December 2020 at $4.73-1/2 earlier in the session.
* Wheat Wv1 lost 1% to $5.92-3/4 a bushel, having dropped earlier on Wednesday to $5.91-1/2 – the lowest since May 31. Soybeans Sv1 lost a quarter of a cent to $13.05 a bushel.
* Expectations of ample supplies weighed on corn prices.
* The U.S. Department of Agriculture’s (USDA) weekly crop progress report, issued after trading ended on Monday, rated 59% of the corn crop as good to excellent. That was up from 57% a week ago and above analysts’ estimates for 58%.
* The USDA also rated 59% of the soybean crop as good to excellent, a jump from 54% last week. Analysts had expected 55%.
* Wheat prices are being weighed down by harvest pressure in the Northern Hemisphere, although any disruption to the Black Sea supplies due to the Russia-Ukraine war could support the market.
* Ukraine’s air force on Wednesday said a large group of Russian army drones entered the mouth of the Danube river and headed toward river port Izmail near the border with Romania.
* A Russian warship on Sunday fired warning shots at a cargo ship in the southwestern Black Sea as it made its way northwards, the first time Russia has fired on merchant shipping beyond Ukraine since exiting a landmark UN-brokered grain deal last month.
* U.S. processors crushed more soybeans than expected last month, making it the largest July crush on record, National Oilseed Processors Association data showed on Tuesday.
* Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Tuesday, traders said. Funds were net buyers of soyoil futures. COMFUND/CBT
MARKET NEWS
* U.S. stocks fell and oil slid over 1% on Tuesday as investors renewed fresh concerns over whether the Federal Reserve was done hiking interest rates and the resilience of China’s economy. MKTS/GLOB
DATA/EVENTS (GMT)
0600 UK Core CPI YY July
0600 UK CPI YY July
0900 EU GDP Flash Estimate QQ, YY Q2
1230 US Housing Starts Number July
1315 US Industrial Production MM July
1800 US Federal Open Market Committee issues minutes
from its meeting of July 25-26
(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
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