* Soybeans ease, poised for decline of 3.5 pct in 3 weeks
* Higher-than-expected yield prospects weigh on soybeans
* Wheat set for biggest weekly decline since early September
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Sept 30 Chicago soybeans eased on
Friday, set for a third week of decline on prospects for higher
yields than estimated by the U.S. Department of Agriculture,
although strong demand kept a floor under the market.
Also struggling with abundant supplies, the wheat market is
facing its biggest weekly loss in almost a month. Corn is headed
for a third consecutive down week as well.
Chicago Board of Trade most-active soybean contract
has lost almost 1 percent this week, corn 2.4 percent, and
wheat 1.5 percent.
Investors in grain and oilseed markets were squaring
positions ahead of the USDA's quarterly stocks report due later
in the day, and that also dragged on prices.
"Based on 1 June, 2016, stocks and June-August exports and
crush data, we estimate that U.S. soybean stocks as of 1
September, 2016, should be higher than market expectations,
while corn and wheat stocks are likely to be near market
expectations," said Rajesh Singla, head of agriculture research
at Societe Generale.
Analysts polled by Reuters expected the USDA report to show
stocks of corn, soybeans and wheat as of Sept. 1 larger than at
the same time last year.
For the month, corn is up four percent after three months of
losses, wheat has added 2.8 percent in its first gain in five
months, and soybeans look to close September little changed.
Support for the soybean market is stemming from strong
demand. The USDA on Thursday morning reported export sales of
U.S. soybeans in the latest week at 1.7 million tonnes, topping
expectations for 1.1 million to 1.3 million tonnes.
The USDA said exporters reported the sale of another 120,000
tonnes of soybeans to China for delivery in the 2016/17
marketing year, and that followed earlier announcements this
week of other deals with the world's top buyer of the oilseed.
The agency also said export sales of corn totalled just
575,000 tonnes, below a range of trade expectations for 750,000
to 950,000 tonnes.
In bearish news, Russia's winter grain-sowing campaign for
the 2017 crop has benefited from good weather so far this
autumn, analysts said on Thursday, improving chances it could
have a bumper harvest for a fourth year running.
Commodity funds were net sellers of CBOT wheat and corn
futures contracts on Thursday and net buyers of soybeans and
soyoil. They also were net sellers of soymeal.
Grains prices at 0258 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 399.00 0.00 +0.00% -1.05% 406.49 48
CBOT corn 328.50 -0.75 -0.23% -0.23% 332.31 41
CBOT soy 945.75 -4.50 -0.47% +0.03% 966.81 35
CBOT rice 9.85 $0.08 +0.82% +1.13% $9.77 57
WTI crude 47.57 -$0.26 -0.54% +1.11% $45.75 61
Euro/dlr $1.121 -$0.001 -0.07% -0.01%
USD/AUD 0.7622 -0.001 -0.14% -0.88%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Tom Hogue)