Grains: Corn set for 10% weekly decline on improved supply prospects

SLC Agricola SA

09/07/2021 01:25

SINGAPORE, July 9 (Reuters) - Chicago corn futures lost more
ground on Friday with the market poised for a decline of almost
10% this week on improved outlook for crops in the United States
and Brazil.
    Soybeans ticked higher, though prices are set to finish
lower this week.
    
    FUNDAMENTALS
    * The most-active corn contract on the Chicago Board of
Trade (CBOT)  Cv1  was down 0.3% at $5.22-1/4 a bushel, as of
0011 GMT. The market is down around 10% this week, giving up
much of last week's gains.
    * Soybeans  Sv1  and wheat  Wv1  have given up more than 5%
this week.
    * Expectations of cool and wet weather in key U.S. growing
areas is weighing on corn and soybean futures.
    * In South America, higher-than-expected yields are adding
pressure on corn prices. Brazil's listed grain grower SLC
Agrícola  SLCE3.SA  has been positively surprised by the first
batches of second corn it harvested, with yields exceeding
expectations even as the crop suffered from bad weather.
    * Despite the inevitable loss of yield caused by a drought
and then frosts in some regions, SLC's Director of Operations
Gustavo Lunardi told Reuters in an interview he sees "excellent"
margins for corn given current high prices.
    * World food prices fell in June for the first time in 12
months, pushed lower by declines in vegetable oils, cereals and
dairy products, the United Nations food agency said on Thursday.
 urn:newsml:reuters.com:*:nR1N2MF015
    * The Rome-based FAO also said in a statement that worldwide
cereal harvests would come in at nearly 2.817 billion tonnes in
2021, slightly down on its previous estimate, but still on
course to hit an annual record.
    * Commodity funds were net sellers of CBOT corn, soybean,
soymeal, wheat, and soyoil futures contracts on Thursday,
traders said.  COMFUND/CBT 
    
    MARKET NEWS
    * U.S. stock prices fell, while bond prices and the euro
firmed on Thursday as investors pared exposure to risk and
headed for safety amid a cloudy outlook for the pace of economic
recovery.  MKTS/GLOB 
    
    DATA/EVENTS (GMT)
0130  China   PPI, CPI YY           June
0600  UK      GDP Est 3M/3M         May
0600  UK      GDP Estimate MM, YY   May
0600  UK      Manufacturing Output  MM

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
 ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters
Messaging: naveen.thukral.thomsonreuters.com@reuters.net))