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Corn, soybeans gain more ground ahead of U.S. reports

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SINGAPORE — Chicago corn and soybean prices rose for a fifth consecutive session on Tuesday on concerns over U.S. weather and positioning ahead of monthly U.S. government’s supply-and-demand reports.

Wheat prices eased.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.2% to $6.30 a bushel, as of 0019 GMT, and soybeans added 0.3% to $14.09-1/2 a bushel.

* Wheat lost 0.6% to %8.51-1/2 a bushel.

* The corn crop is entering its critical pollination stage of development, so the market is particularly sensitive to forecasts indicating stressful heat and dryness. Soybeans face a greater risk from such weather in August.

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* In its weekly crop progress and conditions report, the U.S. Department of Agriculture (USDA) said that 64% of the U.S. corn crop was rated good to excellent, unchanged from a week ago. That was 1 percentage point lower than what analysts were expecting.

* Good-to-excellent ratings for soybeans were pegged at 62%, the USDA said. That was down 1 percentage point from a week ago and 2 percentage points below market expectations.

* Grain markets had rebounded last week in a technical bounce from multi-month lows and speculation that lower prices could spark import purchases by China or other global buyers.

* The market is looking ahead to Tuesday’s monthly USDA crop reports, which are expected to show a slight increase is the agency’s corn crop outlook, along with a small drop in soybean production.

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* In Russia, wheat exports are expected to remain muted in July despite lower export tax, a massive crop and a weakening rouble as problems with logistics and trade finance caused by Western sanctions persist.

* The world’s largest wheat exporter is expected to have record amounts of the crop available to supply abroad in the July-June marketing season, and reduced grain export taxes sharply on July 1 to support shipments.

* The IKAR agriculture consultancy said on Monday that it downgraded its forecast for Russia’s July wheat exports to 1.7-2.0 million tonnes from the previously expected 2.0-2.3 million tonnes.

* Commodity funds were net buyers of CBOT corn, soybean and soyoil futures contracts on Monday and net sellers of wheat and soymeal, traders said.

MARKET NEWS

* World equities and U.S. bond yields fell on Monday as investors prepare for fresh inflation data and corporate earnings that may be seen as potentially influencing the Federal Reserve’s path ahead for interest-rate increases.

DATA/EVENTS (GMT) 0900 Germany ZEW Economic Sentiment July 0900 Germany ZEW Current Conditions July 1200 India Industrial Output YY May (Reporting by Naveen Thukral)

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