Corn falls from six-week peak, bumper production drags

corn

U.S. corn edged lower on Wednesday to give back much of its gains from the previous session when prices hit a six-week peak, as ample global supply offset support from short-covering.

FUNDAMENTALS

* Chicago Board of Trade front-month corn fell 0.27 percent to $3.71-1/2 a bushel, having gained 0.34 percent in the previous session when prices marked a six-week top of $3.73-3/4.

* Front-month wheat rose 0.1 percent to $4.75-3/4 a bushel, after closing little changed on Tuesday when prices hit a near one-week high of $4.83 a bushel.

* Front-month soybeans fell 0.4 percent to $8.82-3/4 a bushel, after ending down 0.4 percent on Tuesday.

* Rattled by stringent new import rules, Egypt’s wheat suppliers boycotted en masse a state tender on Tuesday, pushing the world’s biggest purchaser of the commodity towards a crisis that could threaten its strategic grain reserves.

* GASC rejected a 63,000-tonne wheat shipment this week for containing traces of ergot. GASC on Tuesday said it was in talks to import 3 million tonnes of wheat outside the tendering process.

MARKET NEWS

* The yen and euro held on to overnight gains against the dollar on Wednesday after a sharp slide in crude oil prices fuelled risk aversion, driving down U.S. debt yields to 9-month lows and dulling the greenback’s appeal.

* U.S. oil futures extended losses into a third session in early Asian trade on Wednesday as U.S. crude stocks last week surged to more than half a billion barrels, stoking concern over global oversupply.

* U.S. stocks dropped on Tuesday after another steep fall in oil prices and a disappointing spending forecast from Exxon Mobil.

[reuters]

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