US grains little changed ahead of USDA report

SYDNEY/PARIS - US and European grain were little changed in hesitant trading on Friday as the market awaited release of the US Department of Agriculture’s monthly supply/demand report at 1230 GMT.

By (Reuters)

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Published: Fri 10 Jul 2009, 6:14 PM

Last updated: Thu 2 Apr 2015, 7:35 AM

Weaker crude oil, which traded below $60 a barrel, and share prices contributed to the subdued mood on grain markets as investors were cautious about corporate earnings and the economic outlook.

Analysts expected the USDA report to show higher ending stock estimates for corn and wheat, but with near-term soybean stocks remaining tight.

However, wheat prices could get a lift from a fall in the US crop outlook.

By 1152 GMT, Chicago Board of Trade July wheat was up 0.2 percent at $4.95-1/4 while in Europe the benchmark November milling wheat edged down 0.52 percent to 142.50 euros a tonne.

US wheat futures have staged a modest recovery from multi-month lows this week, while Euronext wheat has consolidated above a major support level at 140 euros.

‘There is potential for the market to go down today with the report,’ one Euronext trader said. ‘But I don’t see prices really tumbling,’ he added, referring to the support floor underpinning the market.

CBOT corn for July delivery added 0.73 percent to $3.46 while soybeans for July delivery inched down 0.2 percent to $11.08-1/4.

US EXPORTS

Soybean futures are on course for a 10 percent weekly decline, their largest percentage fall since December last year, caught up in the downdraft that hit commodities markets this week, as worries about the US economy resurfaced.

But they have recovered some of their losses with support from strong weekly exports that have turned attention back to tight short-term supplies.

China, the world’s top soy buyer, booked more than 1 million tonnes — 283,500 tonnes for delivery before the start of the 2009 US harvest, and 830,000 tonnes for shipment during the 2009/10 marketing season that begins Sept. 1.

US corn and wheat exports last week were also bigger than many had expected.



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