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GRAINS-Wheat up on demand hopes, eyes biggest monthly gain in 1-1/2 years
February 28, 2017 / 3:44 AM / 7 months ago

GRAINS-Wheat up on demand hopes, eyes biggest monthly gain in 1-1/2 years

    * Wheat rises from 1-week low on hopes for strong demand
    * Chicago wheat set for biggest monthly rise since Sept 2015

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Feb 28 (Reuters) - Chicago wheat futures edged
higher on Tuesday on expectations of strong demand for U.S.
cargoes after a recent decline in prices,  with the market
poised for its biggest monthly gain in 17 months.
    Soybean prices rose as delays in Brazilian farmer sales
supported the market, while corn gained for a second session.
    The Chicago Board of Trade's most-active wheat contract
 has climbed 4.7 percent so far in February in what would
be the strongest monthly rise since September 2015.
    Soybeans are at a similar level to the start of
February and corn is up 2.7 percent for the month, its
third consecutive monthly gain.
    The wheat market hit a near one-week low on Monday at $4.38
a bushel, pressured by a favourable outlook for northern
hemisphere production.
    "There should be some demand returning for U.S. wheat after
the fall in prices that we have seen," said Phin Ziebell,
agribusiness economist, National Australia Bank. 
    "But inventories where they are, there is not much upside
potential."
    Wheat prices have generally been buoyed by a U.S. Department
of Agriculture forecast earlier this month for strong exports.

    Investors in the agriculture market will be closely watching
a tender issued by Egypt's General Authority for Supply
Commodities to buy an unspecified amount of wheat from global
suppliers for shipment from April 1 to 10.
    Traders and analysts on Monday predicted moderate deliveries
against CBOT March soy futures on Tuesday, the first notice day
for deliveries against the contract.
    Commodity funds were net sellers of CBOT corn, wheat and
soybean futures contracts on Monday, traders said. Estimates for
fund sales of corn ranged from 8,000 to 16,000 contracts.
Estimates for other commodities were tightly bunched.


 Grains prices at  0326 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  440.50   1.75    +0.40%   -2.87%       448.96   34
 CBOT corn   362.25   2.00    +0.56%   -0.89%       367.27   37
 CBOT soy    1026.25  4.25    +0.42%   +1.46%       1044.36  32
 CBOT rice   9.61     -$0.03  -0.26%   +1.43%       $9.61    35
 WTI crude   54.16    $0.11   +0.20%   +0.31%       $53.15   63
 Currencies                                                  
 Euro/dlr    $1.059   $0.003  +0.25%   +0.07%                
 USD/AUD     0.7682   0.001   +0.17%   -0.40%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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