SINGAPORE, July 10 (Reuters) – Chicago corn and soybean
futures ticked higher on Monday as the markets recovered from
previous session’s losses, although gains were limited due to
expectations of further rains in the U.S. Midwest.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of
Trade (CBOT) was up 0.6% at $4.97-1/2 a bushel, as of 0039
GMT, and soybeans rose 0.5% to $13.23-3/4 a bushel. Wheat
fell 0.8% to $6.44-1/2 a bushel.
* Grain traders are monitoring shifts in weather as more
U.S. corn enters its critical pollination stage. Two-thirds of
corn and 60% of soybeans were affected by drought, as of July 4,
according to the U.S. Department of Agriculture (USDA).
* Normal to above-normal precipitation was forecast for the
central and southern Midwest in the six- to 15-day period, and
the northwest corner of the region was seen remaining largely
dry, according to Commodity Weather Group.
* Weekly USDA corn export data showed sales in line with
trade expectations last week, while wheat sales and new-crop
soybean sales topped estimates.
* Additionally, the USDA on Friday confirmed that Mexico
purchased 180,000 metric tons of old- and new-crop U.S. corn.
* Traders are awaiting a monthly USDA supply-and-demand
report on Wednesday, with cuts to U.S. corn and soybean yield
estimates possible.
* Large speculators switched to a net short position in
Chicago Board of Trade corn futures in the week ended July 3,
regulatory data released on Friday showed.
* The Commodity Futures Trading Commission’s weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.
MARKET NEWS
* MSCI’s global equity index ended Friday’s session
virtually unchanged while the dollar was lower as government
data showed that U.S. jobs growth slowed more than expected in
June, easing worries about the outlook for Federal Reserve rate
hikes.
DATA/EVENTS (GMT)
0130 China PPI, CPI YY June
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
