March 29, 2017 / 1:24 AM / 6 months ago

GRAINS-Soybeans hold near 5-month low on supply concerns

    SYDNEY, March 29 (Reuters) - U.S. soybeans edged lower on
Wednesday as expectations for increased plantings in North
America, along with already ample global supplies, kept the
oilseed tethered near a five-month low.
         
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade fell 0.1 percent to $9.70-3/4 a bushel, having
closed little changed in the previous session.
    * Soybeans hit a low of $9.68-1/4 on Monday, the lowest
since October, 2016.
    * The most active corn futures were unchanged at
$3.57-3/4, having gained 0.6 percent in the previous session.
    * The most active wheat futures was little changed at
$4.24-3/4 a bushel, having closed up 0.9 percent on Tuesday. 
    * Soybeans were weighed down by ample global supplies,
further stoked by U.S. plantings for next season, analysts
expect.
    * Analysts expect a 5.7 percent jump in U.S. soybean sowings
from a year ago, but have forecast a reduction in corn planting
of 3.2 percent and an 8 percent cut in wheat sowings.

    * Wheat was pressured by forecasts for rains in the Plains
over most of the last week. The showers should bolster yield
prospects for the developing winter wheat crop.
    * The outlook for rains across the Plains, the southern
Midwest and the Mississippi River Delta over the next week also
supported corn futures by threatening to delay seeding in those
areas. 
    * However, planting is still a few weeks away in core Corn
Belt states like Iowa and Illinois.
                
    MARKET NEWS  
    * The dollar rose on Tuesday, bouncing from 4-month lows, as
a top Federal Reserve official reinforced expectations of more
U.S. rate hikes to come while political uncertainties
surrounding Britain's exit from the EU pressured European
currencies.  
    * Oil prices rose as much as 2 percent on Tuesday after a
severe disruption to Libyan oil supplies and as officials
suggested OPEC and other producing countries could extend an
output-cuts deal to the end of the year.  
    * U.S. stocks ended sharply higher on Tuesday, with
financial and energy shares surging as data showed U.S. consumer
confidence soaring to a more than 16-year high.  
    
    DATA AHEAD (GMT) 
0600  Germany            Import prices                   Feb 
0645  France             Consumer confidence             Mar 
1400  U.S.               Pending homes sales             Feb 

 Grains prices at  0051 GMT
 Contract      Last   Change   Pct chg  Two-day chg    MA 30  RSI 
 CBOT wheat  424.75     0.25    +0.06%       +0.95%   441.87    46
 CBOT corn   357.75     0.00    +0.00%       +0.56%   368.73    41
 CBOT soy    970.75    -1.25    -0.13%       -0.08%  1015.37    20
 CBOT rice     9.79    $0.04    +0.36%       -0.15%    $9.71    58
 WTI crude    48.55    $0.18    +0.37%       +1.72%   $50.82    50
 Currencies                                                       
 Euro/dlr    $1.082   $0.001    +0.05%       -0.43%               
 USD/AUD     0.7649    0.002    +0.21%       +0.45%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Richard Pullin)
  

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