SYDNEY, June 20: US corn fell on Wednesday as traders locked in profits after clocking up gains of more than 10 percent in two previous sessions, boosted by renewed optimism that a euro zone crisis could be averted and on evidence of weather damage to crops.
Chicago Board Of Trade December corn fell 0.71 percent after firming 5.52 percent in the previous session. Front-month July corn dipped 0.45 percent after a climbing 2.17 percent on Tuesday.
November soybeans opened flat after firming 3.38 percent in the previous session.
July wheat was also steady after rising 3.35 percent in the previous session, drawing support from concerns over a disappointing Russian crop.
FUNDAMENTALS
· Commodity funds helped drive the market higher, buying an estimated 40,000 corn contracts over the last two sessions, CBOT traders said. The buying spree suggests funds have turned bullish on corn after the latest weekly report from the U.S. Commodity Futures Trading Commission showed funds holding a small net short position in corn as of June 12.
· Soybeans rose on U.S. Weather worries. USDA said 56 percent of the U.S. Soybean crop was in good-to-excellent shape, down 4 points from the previous week.
· Old-crop soybeans drew support from a sale of 140,000 tonnes of U.S. Soybeans to unknown destinations reported by the USDA. The soybeans were scheduled for delivery in the current old-crop marketing year that ends Aug. 31, underscoring strong export demand for U.S. Soy after a drought slashed the South American harvest.
· SovEcon lowered his 2012/13 grain harvest forecast by 4.5 percent and his wheat harvest forecast by 5.7 percent from previous estimates and said the outlook could be reduced further due to falling yields.
· In its weekly crop report on Monday, USDA said 60 percent of the U.S. Corn crop was rated in good to excellent condition, down 3 percentage points from the previous week, while analysts had predicted a 2-point drop.
· USDA also said 5 percent of U.S. Corn had begun silking, an indication that the crop had reached its reproductive stage. Stressful weather during this phase can have a significant impact on yields.
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· MARKET NEWS
· The euro rallied against the U.S. Dollar and Japanese yen on Tuesday, buoyed by positive news out of Greece and as a run-up in Wall Street stocks encouraged investors to take on riskier positions.
· Brent crude edged lower on Tuesday on relief that negotiations to defuse the dispute over Iran’s nuclear program led to plans for technical talks in July, while hopes for more monetary stimulus from the Federal Reserve helped lift U.S. Crude.
· U.S. Stocks rose on Tuesday on hopes that the Federal Reserve will agree to extend stimulus measures as the economy struggles to recover and the euro zone’s debt crisis gets worse. (Agencies)
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