GRAINS-Soybeans at record top on shrinking supply, stimulus hopes

Tue Sep 4, 2012 11:37am IST

* Front-month soy hits record high of $17.94-3/4
    * Tightening supplies, strong demand buoy market
    * Rising hopes of stimulus support commodities
    * Brazil running out of soy, exports drop in August

 (Updates prices)
    By Naveen Thukral
    SINGAPORE, Sept 4 (Reuters) - Chicago soybeans climbed to a
record high on Tuesday as falling exports from Brazil
highlighted the decline in global supplies after poor production
in South America and a historic drought in the United States.
    Corn and wheat jumped around 1 percent with rising
expectations of global economic stimulus measures underpinning
the commodity markets, including oil and metals.
    Brazil exported 1.96 million tonnes of soybeans in the first
four weeks of August, down from 4.13 million tonnes shipped in
all of July, according to trade ministry data. Brazil is the
world's second-largest exporter and the decline in its sales
means demand will intensify for oilseeds from the United States
and other origins.
    "We are still pricing in tight soybean supplies going
forward," said Victor Thianpiriya, agricultural commodity
strategist at ANZ in Singapore.
    "Exports from Brazil have dropped sharply which goes to show
that they are running out of beans and it means a lot more
demand for U.S. beans."
    Chicago Board of Trade front-month soybeans rose 1.7
percent to a record high of $17.94-3/4 a bushel while actively
traded November contract rose 1.6 percent to $17.84-3/4 a
bushel. December corn added 1 percent to $8.07-1/2 a
bushel and December wheat gained 0.9 percent to $8.97-3/4
a bushel.
    Demand for soybeans remains strong even at record high
prices, with buyers snapping up cargoes from the United States,
Brazil and Argentina, the three countries which account for 90
percent of global exports.
    A U.S. Department of Agriculture report had pegged export
sales of soybeans at 721,400 tonnes for the week before last,
near the high end of forecasts for 600,000 to 800,000 tonnes.
    Thai feed mills have bought up to 1 million tonnes of South
American soymeal in deals signed in the past few weeks, traders
told Reuters at an industry conference in Thailand last week.
 
    There was additional support for soybeans, corn and wheat on
hopes the European Central Bank will unveil a plan to tackle the
region's debt crisis later this week.
    Asian shares eased on Tuesday on concerns over weakening
regional and global economic activity, but expectations of more
stimulus from central banks and hopes for progress in tackling
Europe's debt crisis lent support. 
    The wheat market was supported by strong global demand with
Egypt, the world's biggest importer, buying 355,000 tonnes of
Russian, Ukrainian and Romanian over the weekend.
    Black Sea wheat has been sought after over the past few
weeks, boosting expectations that Russia will curb exports amid
dwindling domestic supplies, although the government denied on
Friday it was planning to limit sales. 
    A majority international traders polled by Reuters last
week, however, still expect Russia to impose export restrictions
as soon as October. 
  
  Prices at  0551 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     897.75     8.25  +0.93%   874.33   51
  CBOT corn      807.50     7.75  +0.97%   768.83   56
  CBOT soy      1784.75    28.25  +1.61%  1590.03   72
  CBOT rice      $15.31    $0.03  +0.16%   $15.48   31
  WTI crude      $97.18    $0.71  +0.74%   $89.22   65
  Currencies                                                
  Euro/dlr       $1.261   $0.032  +2.62%   
  USD/AUD         1.028   -0.028  -2.62%   
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
    

 (Editing by Miral Fahmy)
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