December 17, 2015 / 3:10 AM / 2 years ago

GRAINS-Soybeans fall for 3rd day on Argentina currency move

* Soy at 3-week low, Argentina seen boosting exports
    * Corn struggles, wheat falls on ample world supplies

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Dec 17 (Reuters) - U.S. soybeans eased for a
third consecutive session on Thursday as Argentina's move to let
the peso trade freely will likely prompt farmers in the South
American country to boost exports, increasing competition in an
amply supplied market.
    Corn was largely unchanged after dropping in the last two
sessions, while wheat slid for a second day with plentiful
global supplies anchoring the grain markets.
    Chicago Board of Trade January soybeans fell 0.6
percent to $8.57-1/2 a bushel by 0250 GMT, after dropping
earlier in the session to match last session's three-week low of
$8.56 a bushel.
    March corn was flat at $3.69-3/4 a bushel after
closing down 2 percent in the previous session when prices hit
the lowest since Dec. 3. Wheat lost 0.4 percent to
$4.81-3/4 a bushel.
    "Policy changes in Argentina will likely remain the key
driver for grain markets today," said Paul Deane, senior
agricultural economist at ANZ Bank in Melbourne.
    "The anticipated depreciation of the peso will prompt
farmers to export large hoarded stocks in coming quarters."
    Argentina said on Wednesday it was lifting its currency
controls and would allow the peso to float when markets open,
setting the stage for a sharp devaluation, following promises by
President Mauricio Macri for reforms in order to increase
exports and spur economic growth.
    Macri, a free-market advocate who took office last week, has
vowed to regain investor trust in Argentina, shattered by its
2002 record default, a lack of trustworthy official economic
data and heavy state intervention. 
    The pressure on corn is stemming from a weekly U.S.
government report that showed ethanol inventories climbing to
their highest since mid-June. The Energy Information
Administration said ethanol stocks rose by 493,000 barrels to
20.32 million. 
    Commodity funds sold an estimated net 10,000 CBOT corn
contracts on Wednesday, trade sources said. The funds were also
net sellers of 6,000 soyoil contracts and 5,000 soybean
contracts, they said. 
    The Federal Reserve on Wednesday afternoon raised interest
rates for the first time since 2006. The move was widely
expected but was seen as a negative for commodities markets.
 
     The dollar gained against the euro and yen on Thursday, as
the Fed's decision lifted risk appetite and Treasury yields. A
stronger U.S. dollar further reduces export demand for U.S.
commodities, particularly wheat.
    
  Prices at 0250 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     481.75    -1.75  -0.36%    -2.53%     490.53   50
  CBOT corn      369.75     0.00  +0.00%    -1.99%     373.23   45
  CBOT soy       857.50    -5.00  -0.58%    -1.12%     870.64   28
  CBOT rice      $10.96    $0.00  +0.00%    -0.27%     $11.70   31
  WTI crude      $35.42   -$0.10  -0.28%    -5.17%     $40.34   28
  Currencies                                                
  Euro/dlr       $1.085  -$0.006  -0.56%    -0.70%
  USD/AUD         0.718   -0.005  -0.65%    -0.10%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                           
 
 (Reporting by Naveen Thukral)

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