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GRAINS-Soybeans face biggest 2-week fall since early Feb on record Brazilian crop
March 17, 2017 / 3:48 AM / 4 months ago

GRAINS-Soybeans face biggest 2-week fall since early Feb on record Brazilian crop

4 Min Read

    * Soybeans lose ground as record Brazilian supplies flood
market
    * Argentina's corn, soybeans benefit from near-perfect
weather

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, March 17 (Reuters) - Chicago soybean futures lost
ground on Friday with the market set for a second week of
declines as a record Brazilian supplies hit the market and
near-perfect weather in Argentina boosts supply prospects.
    Corn was poised to end the week with slight gain on strong
U.S. exports while wheat faced a second week of losses amid
plentiful supplies although rising demand kept a floor under the
market.
    The Chicago Board Of Trade most-active soybean contract
 lost 3.6 percent in its biggest two-week fall since early
February. 
    Corn is up half a percent this week, recovering from a
4.3 percent decline last week, and wheat is down 1 percent
after dropping almost three percent last week.
    "Brazilian crop is so big that it is hard for soybeans to
rally," said Kaname Gokon at brokerage Okato Shoji in Tokyo.
    "There is going to be pressure on prices as Chinese buyers
shift to South American markets and the demand for U.S. products
weakens."
    Earlier this month, the U.S. Department of Agriculture said
U.S. soybean supplies will be bigger than expected at the end of
the marketing year as a record harvest in Brazil will flood the
global market. 
    Argentine corn and soybeans should benefit this season from
high yields brought by good weather, the Buenos Aires Grains
Exchange said on Thursday, adding that it may increase its
harvest estimate above the current 54.8 million tonnes. 

    Corn was benefiting from strong demand for U.S. shipments.
    The U.S. Department of Agriculture reported weekly export
sales of old-crop U.S. corn at 1.255 million tonnes, above a
range of trade expectations and the most in seven weeks. 

    The wheat market is under pressure but strong demand is
expected to underpin values.
    Egypt has been buying wheat on global markets at a breakneck
clip in recent months in what grain traders say is an effort to
keep up with its cash-strapped population's growing reliance on
subsidised bread.
    The acute political sensitivity of the availability and
price of the staple leaves the government with little choice but
to ensure supplies, despite an economic crisis caused by six
years of drift since an uprising ended Hosni Mubarak's 30-year
rule.
    The USDA said private exporters sold 120,000 tonnes of U.S.
hard red winter wheat to Algeria for 2016/17 delivery. 

    Commodity funds were net buyers of CBOT corn, soybean,
soymeal and wheat futures contracts on Thursday, and small net
sellers in soyoil, traders said.
    
 Grains prices at 0311 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  435.75  -0.25   -0.06%   -0.06%       449.83   60
 CBOT corn   365.75  -0.25   -0.07%   +0.62%       373.48   54
 CBOT soy    998.00  -3.50   -0.35%   +0.00%       1034.62  40
 CBOT rice   9.85    $0.02   +0.20%   +1.81%       $9.70    79
 WTI crude   48.83   $0.08   +0.16%   -0.06%       $52.17   32
 Currencies                                                 
 Euro/dlr    $1.077  $0.001  +0.08%   +0.38%                
 USD/AUD     0.7682  0.000   +0.07%   -0.32%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
  

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