GRAINS-Corn set for biggest weekly gain in more than 7 months

29 May 2020, 01:26

SYDNEY, May 29 (Reuters) - U.S. corn futures rose for a fifth consecutive session on Friday as concerns about adverse weather impacting crops pushed the grain towards its biggest weekly gain in more than seven months.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up more than 3% for the week, heading for their biggest weekly gain since October 2019.

* Corn was up 0.5% at $3.29 a bushel by 0106 GMT after rallying more than 2% on Thursday, when prices hit their highest since April 23 at $3.30-3/4 a bushel.

* The most active soybean futures were up 1% for the week, the biggest weekly gain in a month.

* The most active wheat futures were up 1% for the week, the second straight weekly gain.

* Hot, dry weather expected across the U.S. Midwest.

* Corn drew some support from U.S. government data showing a fourth straight weekly increase in ethanol production and a drop in ethanol stocks to the lowest since January.

* Rising U.S.-China tensions and China's continued buying of Brazilian soy for shipment during the traditional U.S. export season weighed on soybeans.

MARKET NEWS

* The dollar was hemmed into a narrow trading range as traders' focus shifted to U.S. President Donald Trump's response to China's passage of a national security law for Hong Kong.

* Oil prices edged lower after U.S. inventory data showed lacklustre fuel demand in the world's largest oil consumer while worsening U.S.-China tensions weighed on global financial markets.

* Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday. (Reporting by Colin Packham; Editing by Subhranshu Sahu)