June 12, 2019 / 12:57 AM / 4 days ago

GRAINS-Corn prices fall, but cut in U.S. yield forecast curbs losses

    SYDNEY, June 12 (Reuters) - U.S. corn futures edged down on
Wednesday after gains of nearly 3% in the previous session, but
losses were checked by a larger-than-expected cut in yield
forecasts by the U.S. Department of Agriculture.
         
    FUNDAMENTALS  
    * The most active corn futures on the Chicago Board of Trade
 were down 0.2% at $4.26-3/4 a bushel by 0024 GMT, having
closed the previous session up 2.9%.
    * The most active soybean futures were down 0.2% at
$8.57-1/4 a bushel, after closing little changed on Tuesday.
    * The most active wheat futures were down 0.4 percent
at $5.15-3/4 a bushel, after ending Tuesday up 2.1%.
    * The USDA in a monthly report slashed its corn yield
projection by 10 bushels an acre from May, or 5.7%, to 166
bushels. Analysts had expected a smaller decline to 172.4
bushels.
    * The drop, along with a 3-percent decrease in the USDA's
expectation for how many acres farmers will plant, left the
government's production estimate at 13.68 billion bushels. That
would be the smallest harvest in four years.
    * The USDA said late on Monday that it was looking into ways
to allow farmers who have been unable to plant crops due to rain
to qualify for farm aid payments linked to trade disputes.

         
    MARKET NEWS  
    * The U.S. dollar index dropped slightly on Tuesday as
investors focused on the U.S.-China trade war and economic data
for signals of growth and whether the U.S. Federal Reserve is
likely to cut rates in the coming months.  
    * Oil prices fell on Wednesday, weighed down by a weaker oil
demand outlook and a rise in U.S. crude inventories despite
growing expectations of ongoing OPEC-led supply cuts.  
    * U.S. stocks ended near flat and the Dow snapped a six-day
winning streak on Tuesday, as investors paused following a run
of gains.  
    
    DATA/EVENTS (GMT)
1200    Brazil    Retail Sales YY        April
1200    India     Industrial Output YY   April
1230    US        Core CPI YY, NSA       May
1230    US        CPI MM, SA             May
1230    US        CPI YY, NSA            May
        
 Grains prices at  0024 GMT
 Contract       Last   Change   Pct chg  Two-day chg   MA 30  RSI
 CBOT wheat   515.75    -2.25    -0.43%       +1.63%  474.33   61
 CBOT corn    426.75    -1.00    -0.23%       +2.65%  393.72   63
 CBOT soy     857.25    -2.00    -0.23%       -0.15%  844.58   48
 CBOT rice     11.59    $0.01    +0.13%       -1.53%  $11.28   54
 WTI crude     52.59   -$0.68    -1.28%       -1.26%  $58.77   30
 Currencies                                                      
 Euro/dlr     $1.133   $0.000    +0.00%       +0.15%             
 USD/AUD      0.6958    0.000    -0.03%       -0.04%             
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  
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