GRAINS-Corn, soy gain on planting delays, relief over NAFTA

Published 2017-04-27, 03:34 p/m
GRAINS-Corn, soy gain on planting delays, relief over NAFTA

* Rains in near term forecast to stall corn, soy planting

* Drier long term outlook for Midwest limits planting worry

* Grains recover as Trump softens stance on NAFTA withdrawal

* Wheat jumps, led by HRW, as cold raises crop damage worry (New throughout, updates prices and market activity to close)

By Karl Plume

CHICAGO, April 27 (Reuters) - Chicago corn and soybean futures edged higher on Thursday on concerns about weather delays to spring planting and relief that the White House will not immediately withdraw the United States from the North American Free Trade Agreement (NAFTA).

Solid export sales added support, although both commodities traded lower at times as mild and dry long-term forecasts tempered worries over reduced yields and production.

"There's a lot of rain and cold temperatures, and all of that is supportive. But as long as the deferred forecast stays relatively dry, people aren't getting too nervous just yet, hence the tug-of-war today," said Jim Gerlach, president of A/C Trading in Fowler, Indiana.

Chicago Board of Trade July corn CN7 rose 2-1/2 cents, or 0.7 percent, to $3.69-1/4 a bushel, just above its 200-day moving average of $3.69. CBOT July soybeans SN7 added 3/4 cent to $9.57-1/4 a bushel.

U.S. corn seedings are already slightly behind average and forecasts call for above average precipitation throughout the Midwest through the weekend. But longer term outlooks call for less rain and milder temperatures, forecasters said.

The U.S. Department of Agriculture on Thursday reported net corn export sales hit a three-week high last week while soybean sales hit a one-month peak, with old-crop deals for both crops topping trade expectations. EXP/CORN EXP/SOY

A senior Trump administration official said on Wednesday that a draft executive order to withdraw the United States from NAFTA was under consideration. a move would threaten agricultural trade with Mexico and Canada, two top markets for U.S. farm products.

U.S. President Donald Trump, however, later told the leaders of Canada and Mexico on Wednesday that he would not terminate the NAFTA treaty at this stage, but will move quickly to begin renegotiating it with them. prices climbed on Thursday, led by hard red winter wheat futures, on worries that frigid temperatures in the central and southern Plains could damage the developing crop.

Low temperatures in north-central Kansas, the top HRW state, are expected to be in the mid- to upper-20s (Fahrenheit), according to the Commodity Weather Group.

July KC HRW wheat futures KWN7 jumped 8-1/2 cents, or 2 percent, to $4.33-3/4 a bushel. CBOT July wheat WN7 rose 4-3/4 cents, or 1.1 percent, to $4.31-1/4 a bushel while July Minneapolis spring wheat 1MWEN7 added 2-1/2 cents, or 0.5 percent, to $5.53-1/4 a bushel.

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