March 8, 2017 / 3:34 AM / 6 months ago

GRAINS-Soybean prices edge down on ample South America output

    * Soybean prices linger near lowest in eight days
    * Corn markets flat, wheat falls 0.5 percent

    By Colin Packham
    SYDNEY, March 8 (Reuters) - U.S. soybean futures edged lower
on Wednesday, with expectations of silo-bursting Brazilian
supplies keeping prices near their lowest in more than a week.
    Corn markets were unchanged despite expectations for ample
South American production, while wheat fell 0.5 percent.
    The most active soybean futures on the Chicago Board of
Trade dropped 0.1 percent to $10.24-1/2 a bushel. They
closed down 1.2 percent on Tuesday, after hitting their weakest
since Feb. 27 at $10.22-1/4 a bushel.
    "Brazilian farmers are more than 50 percent through what is
shaping up as a very large soybean crop," said Phin Ziebell,
agribusiness economist, National Australia Bank.
    Broker and analyst INTL FCStone on Tuesday pegged the
2016/17 Brazil soybean crop at 109.07 million tonnes, up from
its previous forecast of 104.09 million. The harvest has already
started in Brazil, the world's top soy exporter.
    Meanwhile, dry weather has improved conditions on a key
Amazon road between soy fields and northern Brazilian ports,
ending an immense backlog of trucks carrying the beans, the
country's army said on Monday.
    The most active wheat futures fell 0.44 percent to
$4.54-1/2 a bushel, having closed down 0.4 percent on Tuesday.
    The most active corn futures were unchanged at $3.76 a
bushel, after ending down 0.66 percent in the previous session,
when prices hit a six-day low of $3.73-1/4 a bushel.    
    INTL FCStone on Tuesday pegged the 2016/17 Brazil corn crop
at 93.3 million tonnes, 1.8 million tonnes higher than its
February outlook.
    Analysts also noted an outbreak of avian flu on a farm in
Wisconsin as an area for concern for the market. A widespread
outbreak could depress demand for corn, widely used to feed
livestock.
    Traders are looking towards the U.S. Department of
Agriculture's latest outlook for South American crops in its
monthly supply and demand report on Thursday. 
    Analysts on average were expecting the report to peg Brazil
soy production at 105.95 million tonnes and corn output at 87.78
million tonnes.
       
 Grains prices at  0252 GMT
 Contract       Last   Change  Pct chg   Two-day chg    MA 30  RSI 
 CBOT wheat   454.50    -2.00   -0.44%        -0.87%   451.09    51
 CBOT corn    376.00     0.00   +0.00%        -0.66%   374.93    47
 CBOT soy    1024.50    -0.75   -0.07%        -1.23%  1045.78    36
 CBOT rice      9.52   -$0.01   -0.10%        -0.63%    $9.74    32
 WTI crude     52.81   -$0.33   -0.62%        -0.73%   $53.33    39
 Currencies                                                        
 Euro/dlr     $1.057   $0.000   +0.03%        -0.09%               
 USD/AUD      0.7598    0.001   +0.18%        +0.29%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  

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