Corn edges lower ahead of USDA report, firmer US cash prices limit losses
(Reuters) – U.S. corn edged lower on Tuesday as traders squared positions ahead of the latest U.S. Department of Agriculture report later in the day, though losses were curbed by higher cash prices and concerns over production in South America.
FUNDAMENTALS
* Chicago Board of Trade May wheat fell 0.1 percent to $4.89-1/2 a bushel, having closed up 1.6 percent on Monday.
* May soybeans little changed at $9.93-1/2 a bushel, having firmed 0.84 percent on Monday.
* May corn fell 0.2 percent to $3.88 a bushel, after gaining 0.7 percent in the previous session.
* Analysts predict the USDA might trim its forecast for U.S. 2014-15 soybean ending stocks from its February figure of 385 million tonnes. The average estimate among analysts surveyed by Reuters was 376 million.
* The market remains concerned by truck driver strikes in Brazil, potentially slowing exports from one of the world’s largest soybean exporters.
* Rainfall in Brazil and flooding in some of Argentina’s soy-growing areas were an underlying concern. In Brazil, rains have slowed the planting of second-crop corn.
* CBOT corn drew support from firm cash values in the interior Midwest and the U.S. Gulf as corn processors and exporters tried to draw out grain sales from reluctant farmers.
MARKET NEWS
* The dollar hovered near multi-year highs against the yen and euro on Tuesday, initially flagging on profit taking but quickly finding its footing again as the underlying theme of monetary policy divergence held sway.
* Brent prices fell 2 percent on Monday pressured by European Central Bank bond-buying, while U.S. crude rose about 1 percent on a smaller-than-expected build in inventories at the key Cushing oil hub, leading to a narrowing gap between the two benchmarks.
* U.S. stocks bounced back on Monday, helped by merger and acquisitions activity, while Apple shares ended slightly higher following the long-anticipated rollout of its watch.
