|11 September, 2019

Corn prices hit 8-day high on lower U.S. crop condition

The most active corn futures on the Chicago Board Of Trade were up 0.3% at $3.62-1/2 a bushel

Image used for illustrative purpose. Corn Growing On Farm Against Sky.

Image used for illustrative purpose. Corn Growing On Farm Against Sky.

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SYDNEY - U.S. corn futures rose on Wednesday after the U.S. Department of Agriculture (USDA) said the North American crop's condition unexpectedly declined 58% over the past week, pushing prices to an eight-day high.

FUNDAMENTALS 

The most active corn futures on the Chicago Board Of Trade were up 0.3% at $3.62-1/2 a bushel, as of 0040 GMT, having earlier hit a Sept. 3 high of $3.64 a bushel. Corn closed up 2% in the previous session.

* The most active soybean futures were unchanged at $8.72 a bushel, having closed 1.7% firmer on Tuesday.

* The most active wheat futures were down 0.4% at $4.80-1/4 a bushel. In the previous session, it closed up 1.6% at $4.83-1/2 a bushel, its highest since Aug. 12.

* U.S. Department of Agriculture to issue monthly crop supply and demand report, due to be issued by the USDA on Thursday.

* The agency is expected to lower its corn and soybean crop outlooks following higher-than-anticipated production forecasts last month.

* USDA crop condition report showed that 55% of the U.S. corn crop was in good-to-excellent shape, down from 58% last week and below market forecasts also for 58%.

* The USDA also said 55% of the U.S. soybean crop was in good-to-excellent condition, matching analysts' forecasts and unchanged from last week.

* Australia on Tuesday trimmed its wheat production forecast for the 2019/20 season by nearly 10% as prolonged dry weather across the country's east coast wilts production.

MARKET NEWS 

* The U.S. dollar was steady against the euro on Tuesday, holding in its recent tight range, before the European Central Bank on Thursday is expected to cut interest rates deeper into negative territory and possibly restart asset purchases. 

* Oil prices edged lower on Tuesday after U.S. President Donald Trump fired national security adviser John Bolton, who took a strident stance against Iran, raising speculation of a return of Iranian crude exports to the market. 

* The S&P 500 ended little changed on Tuesday, with a rally in energy and industrial shares countering a drop in the technology and real estate sectors as investors favored value over growth.  

(Reporting by Colin Packham, Editing by Sherry Jacob-Phillips)

© Reuters News 2019

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