GRAINS-Corn Lingers Near 1-Yr High on Hot, Dry Weather Forecasts

June 8th, 2017

By:

Category: Grains, Weather

(Reuters) – U.S. corn futures edged higher on Thursday, lingering near a one-year high, as forecasts for hot, dry weather across key producing regions stoked concerns of widespread production losses.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade rose 0.4 percent to $3.86-1/4 a bushel, having gained 2 percent in the previous session when prices hit a high of $3.87 a bushel – the highest since June 2016.

* The most active soybean futures rose 0.24 percent to $9.33 a bushel, having firmed 0.8 percent on Wednesday.

* The most active wheat futures rose 0.6 percent to$4.47-1/4 a bushel, having closed up 2 percent on Wednesday when prices hit a high of $4.48-3/4 a bushel – the highest since May 4.

* Hot and dry weather in the northern U.S. Plains and northern Midwest is expected over the weekend, potentially damaging crops.

* The U.S. corn crop is still a few weeks from its key pollination phase, which usually occurs in July.

* The U.S. Department of Agriculture on Monday rated 68 percent of the corn crop in good to excellent condition, up from 65 percent a week earlier, but the figure was down from 75 percent a year ago.

MARKET NEWS

* The euro held steady on Thursday ahead of the European Central Bank’s policy announcement, while sterling was supported by expectations that Prime Minister Theresa May’s party will win a majority in Britain’s election.

* Crude futures edged up in early Asian trading on Thursday following heavy losses in the previous session after official data showed that U.S. inventories rose for the first time in 10 weeks, reawakening concerns over a glut.

* U.S. stocks rose on Wednesday despite a sharp decline in energy shares after written testimony from former FBI director James Comey did not add major revelations about an investigation into Russian meddling with last year’s U.S. presidential election.

 

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