November 16, 2015 / 4:07 AM / 2 years ago

GRAINS-Wheat, corn extend losses on firm dollar

* Wheat falls more than 0.5 pct on dollar strength
    * Corn edges lower, soybeans recover slightly

    By Colin Packham
    SYDNEY, Nov 16 (Reuters) - U.S. wheat and corn futures
extended their losses on Monday, in line with weaker financial
markets after Friday's deadly attacks in Paris that renewed risk
aversion and lifted the dollar, hurting demand for commodities
priced in the greenback.
    Asian stocks fell to six-week lows and emerging market
currencies wilted, dragged down also by downbeat data showing
Japan's economy slipped back into recession in the
July-September quarter. 
    In grains, Chicago Board of Trade December wheat futures
 fell 0.66 to $4.92-1/2 a bushel after closing down 0.5
percent on Friday, while corn fell 0.1 percent to $3.58
after closing down 1 percent.
    "The dollar strength is certainly adding downward pressure
to wheat prices, but the other elephant in the room is
fundamentals - which are very good," said Phin Ziebell,
agribusiness economist, National Australia Bank.
    The dollar has gained more than 2 percent against a basket
of currencies this month. A firm dollar makes commodities
priced in the greenback costly for holders of other currencies.
    Wheat is also coming under pressure due to forecasts for
showers across the U.S. Midwest and possibly the Plains next
week that should help winter wheat ahead of dormancy.
    The U.S. Department of Agriculture (USDA) expects U.S. wheat
exports to hit a 44-year low during the 2015/16 season.
    The USDA reported export sales of U.S. wheat in the week
ended Nov. 5 at 226,700 tonnes, in line with trade expectations
for 150,000 to 350,000 tonnes. 
    It said weekly export sales of soybeans totalled 1.297
million tonnes in the latest week, topping the high end of
market estimates that ranged from 600,000 to 1 million tonnes.
    Strong demand for U.S. supplies underpinned CBOT prices of
the oilseed, which rose 0.15 percent to $8.56-1/2 a bushel
after closing down 0.9 percent on Friday.
    Private analytics firm Informa Economics on Friday raised
its forecast for 2016 U.S. soybean plantings to a record 85.3
million acres. It estimated U.S. winter wheat plantings for
harvest in 2016 at 38.7 million acres, which would be down from
39.5 million for 2015 and the smallest since 2010. 


  Grains prices at  0316 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     492.50    -3.25  -0.66%    -1.10%     506.02   35
  CBOT corn      358.00    -0.25  -0.07%    -1.10%     376.90   24
  CBOT soy       856.50     1.25  +0.15%    -0.75%     884.25   29
  CBOT rice      $12.15    $0.00  +0.00%    -1.74%     $12.42   56
  WTI crude      $41.06    $0.32  +0.79%    -1.65%     $45.54   27
  Currencies                                                
  Euro/dlr       $1.072  -$0.006  -0.55%    -0.92%
  USD/AUD         0.712   -0.001  -0.20%    -0.14%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Himani Sarkar)

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