GRAINS-Corn up for 3rd session as U.S. planting lags expectations

27 May 2020, 00:56

SINGAPORE, May 27 (Reuters) - Chicago corn futures rose for a third session on Wednesday as U.S. planting progress dropped below market expectations.

Soybeans ticked lower after a rally, although losses were curbed by strong Chinese demand.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board Of Trade added 0.4% to $3.20-1/4 a bushel by 0040 GMT, having gained 0.7% in the last session.

* Soybeans slid 0.1% to $8.46-1/2 a bushel, having closed 1.8% higher on Tuesday, while wheat fell 0.1% to $5.06-1/4 a bushel, after dropping 0.2% in the last session.

* The U.S. Department of Agriculture (USDA) said U.S. farmers planted 88% of their intended corn acres as of Sunday, below the average of analyst estimates of 90% in a Reuters poll.

* It also said farmers planted 65% of their intended soybean acreage, lagging the average estimate of 69% in the poll.

* Most of the U.S. Crop Watch farmers got an early start to corn and soybean planting this year, but cool, wet conditions have held back growth, and in Indiana, the early start to soybean planting unfortunately did not pay off, Karen Braun, a market analyst for Reuters, wrote in a column.

* Soybeans on Tuesday drew strength from an announcement by the USDA of fresh export sales to China, which agreed in a trade deal this year to increase purchases of U.S. farm products.

MARKETS

* Asian shares shed some of their recent gains on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

DATA/EVENTS (GMT) 0130 Australia Construction Work Done Q1 0645 France Consumer Confidence May (Reporting by Naveen Thukral; Editing by Himani Sarkar)