October 6, 2016 / 1:23 AM / in 10 months

GRAINS-Wheat extends short-covering bounce to nearly 3.5 pct

4 Min Read

SYDNEY, Oct 6 (Reuters) - U.S. wheat edged higher on
Thursday to extend two-day gains to nearly 3.5 percent as
traders exited near record levels of short positions, although
ample global supplies provided a ceiling to gains.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board Of
Trade rose 0.4 percent to $4.06-1/2 a bushel, having
closed up 2.9 percent on Wednesday when prices hit a high of
$4.08-1/2 a bushel - the highest since Sept. 23. 
    * The most active soybean futures fell 0.2 percent to
$9.55-1/4 a bushel, having closed down 0.7 percent on Wednesday.
    * The most active corn futures fell 0.3 percent to
$3.46-3/4 a bushel, having closed down 0.1 percent in the
previous session.
    * Wheat jumps on short covering. The U.S. Commodity Futures
Trading Commission's latest commitments report showed that as of
Sept. 27, non-commercial traders held the fourth-largest net
short position in records dating to 2006. That big net short
left the wheat market vulnerable to short-covering rallies.
 
    * Informa Economics, a private analytics firm, forecast U.S.
2016 soybean production at 4.3 billion bushels with a yield of
51.6 bushels per acre (bpa), trade sources said. 
    * Commodity brokerage INTL FCStone raised its soy yield
estimate to a record 52.5 bushels per acre. 
    * Both firms' yield figures were above the U.S. Department
of Agriculture's last official forecast of 50.6 bpa, signalling
a possible increase when the government updates its figures on
Oct. 12.
         
    MARKET NEWS  
    * The dollar stood tall against the yen on Thursday in early
Asian trading and was steady against other rivals ahead of this
week's nonfarm payrolls report that could reinforce expectations
that the U.S. Federal Reserve will hike interest rates by
December.  
    * Oil prices settled up about 2 percent on Wednesday,
hitting their highest since June, after the fifth unexpected
weekly drawdown in U.S. crude inventories added to support on
hopes that major producers will agree to cut output next month.
  
    * Stocks on Wall Street rose Wednesday led by the energy
sector as oil prices rallied and as financials gained on the
increasing likelihood of an interest rate hike after strong
economic data.  
    
     DATA AHEAD (GMT) 
0900  Euro zone         Industrial production          Jul 
1230  U.S.              Import prices                  Aug 
1230  U.S.              Export prices                  Aug 

 Grains
 prices at
  0047 GMT
 Cont  Last  Chan    Pct    MA  RSI 
 ract          ge    chg    30  
 CBOT  406.  1.50  +0.37  402.    60
 whea    50            %    85  
 t                              
 CBOT  346.  -1.0  -0.29  333.    69
 corn    75     0      %    17  
 CBOT  955.  -1.5  -0.16  962.    44
 soy     25     0      %    35  
 CBOT  10.0  $0.0  +0.00  $9.7    65
 rice     4     0      %     5  
 WTI   49.6  -$0.  -0.42  $45.    70
 crud     2    21      %    99  
 e                              
 Curr                               
 enci                           
 es                             
 Euro  $1.1  -$0.  -0.05            
 /dlr    20   001      %        
 USD/  0.76  -0.0  -0.77            
 AUD     11    06      %        
 Most
 active
 contracts
 Wheat,
 corn and
 soy US
 cents/bus
 hel.
 Rice: USD
 per
 hundredwe
 ight
 RSI 14,
 exponenti
 al
 
 (Reporting by Colin Packham; Editing by Richard Pullin)

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