SYDNEY (Reuters) - Corn futures fell on
Friday, shedding part of the weather-influenced gains from the previous
session, as the market turned cautious ahead of new elections in Greece, which
could hurt a euro zone recovery and rattle global demand.
Chicago Board Of Trade July corn fell 0.50
percent after climbing 1.5 percent in the previous session as hot, dry weather
was forecast to hit the U.S. Midwest at the weekend, threatening crop
development.
Wheat climbed 0.24 percent, extending gains
from the previous session, after China's official grain think-tank revised down
the country's 2012 winter wheat production to 111.7 million metric tons (123.1
million tons) from the previous forecast of 114 million metric tons on damage
from disease.
Wheat had climbed 1.2 percent in the previous
session on a rare sale of U.S. soft red winter wheat to China and on concerns
about weather threats to the crops in Australia and Russia.
July soybeans firmed 0.72 percent after
hitting an 8-day low on Thursday.
FUNDAMENTALS
Drier and hotter weather is expected by the
weekend in the U.S. Midwest corn and soybean growing region, which may add
further stress to the crops, an agricultural meteorologist said on Thursday.
Forecasters predict temperatures will rise into the upper 80s F to mid-90s F
early next week in the Corn Belt but it will be cooler the rest of the week.
Analysts already have started to trim U.S.
corn yield outlooks due to dry weather in May and early June. A Reuters poll of
15 analysts on Wednesday showed the expected yield per acre down 3 percent from
USDA's initial forecast for 166 bushels per acre.
U.S. corn supplies are at the lowest in 16
years and the U.S. Department of Agriculture (USDA) on June 29th will release
its quarterly stocks report that will show the government's estimate of the
corn supply in the U.S. as of June 1. USDA also on that date will release fresh
U.S. plantings data.
China's official grain think-tank has revised
down the country's 2012 winter wheat output to 111.7 million metric tons from a
previous forecast of 114 million metric tons after widespread damage from
disease. The winter wheat now being harvested accounts for about 95 percent of
the country's total wheat output, which the China National Grain and Oils
Information Center (CNGOIC) also revised down to 118 million metric tons this
year from an estimate of 120.3 million metric tons last month.
USDA on Thursday said U.S. exporters sold
China 110,000 metric tons of SRW wheat for delivery this marketing year. It was
the largest sale of SRW wheat to China in 8-1/2 years. The last time China
bought that much wheat was on January 15, 2004, when they bought 300,000 metric
tons of old-crop and 670,000 metric tons of new-crop, according to USDA data.
Soybeans under pressure as funds continue to
liquidate long positions as worries persist over the euro zone debt crisis.
MARKET NEWS
The euro rose against the U.S. dollar for a
third day on Thursday, lifted late in the session by news that central banks
will be ready to provide liquidity to prevent a credit squeeze should the
outcome of Sunday's Greek election trigger market turmoil.
Oil futures rose on Thursday after the
Organization of the Petroleum Exporting Countries agreed to keep its collective
oil output ceiling unchanged for the second half of the year at 30 million
barrels per day.
U.S. stocks jumped on Thursday after news
major central banks are preparing coordinated action if the results of Greek
elections this weekend lead to turmoil in financial markets. <.N>
(Reporting by Colin Packham; Editing by Ed
Davies)
(c) Copyright Thomson Reuters 2012
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