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GRAINS-Corn jumps 1% to hit over 2-week high on USDA…

SYDNEY, Aug 13 – U.S. corn futures jumped more than 1% on Thursday to hit an over two-week high as a widely watched U.S. government report showed production in the United States would be below market expectations.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 1.3% at $3.31-1/2 a bushel, near the session high of $3.31-3/4 a bushel – the highest since July 28. Corn closed up 1.2% on Wednesday.

* The most active soybean futures were up 0.5% at $8.87-1/1 a bushel, near the session high of $8.88 a bushel – the highest since Aug 4. Soybeans closed 1.1% higher on Wednesday.

* The most active wheat futures little changed at $4.91-1/2 a bushel, following a 0.8% loss on Wednesday.

* The USDA, in a monthly report, said U.S. farmers will reap their biggest corn harvest and second-biggest soybean harvest, thanks to favourable weather.

* The agency raised its ending stocks estimates for both crops, although corn stocks came in lower than analysts’ expectations.

* The USDA said its production estimates were based on conditions as of Aug. 1, and did not include the impact of a storm that potentially impacted some 10 million acres of Iowa farmland.

MARKET NEWS

* The dollar nursed losses against most of its peers on Thursday amid fading hopes for a compromise between Republicans and Democrats over additional economic stimulus.

* Crude prices rose more than 2% on Wednesday after government data showed U.S. oil inventories fell across the board, bolstering hopes that fuel demand in the world’s biggest economy will withstand the coronavirus pandemic.

* Asian stocks were set for broad gains on Thursday after Wall Street’s S&P 500 index briefly touched record highs, as investors appeared to shrug off worries about stalled U.S. stimulus talks and a shaky economic recovery.

(Reporting by Colin Packham; Editing by Aditya Soni)

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