* Wheat near last session's peak, highest since Sept. 23
* Demand for U.S. wheat, short-covering underpin prices
* Corn under pressure from Argentine crop estimates
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Oct 6 Chicago wheat rose on Thursday
for a second session to trade near an almost two-week high hit
in the previous session on short-covering and expectations of
strong demand for U.S. shipments.
Soybeans slid for a third straight session on added pressure
from reports of higher yields across the U.S. Midwest. Corn fell
for a second day in part on expectation of a record crop in
Argentina over the 2016/17 season.
Chicago Board Of Trade's most-active wheat contract
rose 0.4 percent to $4.06-1/2 a bushel by 0312 GMT, having
gained more than two percent on Wednesday. It also hit a high of
$4.08-1/2 in the last session, strongest since Sept. 23.
Soybeans fell 0.4 percent to $9.52-3/4 a bushel. Corn
lost 0.6 percent to $3.45-3/4 a bushel.
"U.S. wheat is very competitive, there are sales happening,"
said Ole Houe, an analyst with brokerage IKON Commodities in
Sydney. "There is not much downside to U.S. wheat prices."
The news of Morocco's grain agency buying 260,000 tonnes of
U.S. soft wheat is underpinning the market. Short-covering after
Wednesday's big gain was providing additional support.
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.
For soybeans, expectations of higher yields continue to
weigh on prices.
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.
Those figures are higher than the U.S. Department of
Agriculture's last forecast of 50.6 bpa, signalling a possible
increase in official estimates at the next update on Oct. 12.
In Argentina, farmers will likely harvest a record corn crop
as they favour planting corn and wheat over soybeans in the
upcoming 2016/17 season, the Buenos Aires grains exchange said
A record Argentine crop of 36 million tonnes of
commercial-use corn is expected, up from 30 million tonnes in
2015/16, said Esteban Copati, head of crop estimates at the
Grains prices at 0312 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 406.50 1.50 +0.37% +2.78% 402.85 60
CBOT corn 345.75 -2.00 -0.58% -0.07% 333.13 65
CBOT soy 952.75 -4.00 -0.42% -2.08% 962.27 42
CBOT rice 10.04 -$0.01 -0.05% -0.30% $9.75 65
WTI crude 49.51 -$0.32 -0.64% +1.68% $45.99 68
Euro/dlr $1.120 -$0.003 -0.30% -0.15%
USD/AUD 0.7609 -0.004 -0.59% -0.31%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Tom Hogue)