Tuesday, October 19

Corn eases from 4-week top on US harvest pace; wheat rises


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SINGAPORE/PARIS — Chicago corn slid on

Tuesday, easing from a four-week high scaled in the previous

session, as a rapid US harvest put pressure on prices.

Wheat edged higher after falling in the previous session,

while soybeans also lost ground.

“Demand for grains is still very strong, and the US

harvest has picked up,” said Ole Houe, director of advisory

services at brokerage IKON Commodities in Sydney. “There is

likely to be a bit of harvest pressure starting to show up.”

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The most-active corn contract on the Chicago Board of Trade

(CBOT) lost 0.3% to $5.38 a bushel, as of 1044 GMT, after

hitting its highest since Aug. 31 at $5.40 a bushel on Monday.

Soybeans gave up 0.5% to $12.81-1/2 a bushel, while

wheat gained 0.4% to $7.25 a bushel.

After the CBOT close on Monday, the US Department of

Agriculture (USDA) said the US harvest was 18% complete for

corn and 16% for soybeans, both slightly ahead of the five-year

averages of 15% and 13%, respectively.

Corn rallied in the previous session amid expectations of a

recovery in demand.

Traders are looking ahead to the USDA’s Sept. 30 quarterly

stocks report. Analysts surveyed by Reuters on average expect

the government to report US Sept. 1 corn stocks at 1.155

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billion bushels, below the 1.187 billion bushels that the USDA

projected in its last monthly supply/demand report on Sept. 10.

Russian wheat export prices rose for an 11th consecutive

week, following higher global benchmarks in Chicago and Paris,

analysts said on Monday.

On the oilseed complex, Paris-based rapeseed benchmark

November hit a new contract high for a sixth consecutive

session on Tuesday at 628 euros a tonne, supported by strong

biodiesel prices. It has gained 20% in the past two months.

Commodity funds were net buyers of CBOT corn, soybean,

soymeal and soyoil futures contracts on Monday and net sellers

of wheat futures, traders said. COMFUND/CBT

Prices at 1044 GMT

Last Change Pct

Move

CBOT wheat 725,00 2,75 0,38

CBOT corn 538,00 -1,50 -0,28

CBOT soy 1281,50 -6,00 -0,47

Paris wheat Dec 255,75 2,50 0,99

Paris maize Nov 227,50 2,50 1,11

Paris rape Nov 627,50 2,00 0,32

WTI crude oil 76,28 0,83 1,10

Euro/dlr 1,17 0,00 -0,13

(Reporting by Naveen Thukral Editing by Subhranshu Sahu and

Mark Potter)



financialpost.com

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