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GRAINS-Soybeans little changed after rally, Brazilian supply caps gains
April 6, 2017 / 3:44 AM / 5 months ago

GRAINS-Soybeans little changed after rally, Brazilian supply caps gains

    * Soybeans hold on to last session's gains on Argentina
rains
    * Expectations of record Brazilian crop caps gains

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, April 6 (Reuters) - Chicago soybean futures were
little changed on Thursday with the market holding on to last
session's gains as rains delay the harvest in key producer
Argentina. 
    Wheat firmed for a second session on a forecast of lower
U.S. winter wheat production while corn ticked higher as rains
threatened to slow U.S. planting.
    The Chicago Board Of Trade most-active soybean contract
 gained 0.03 percent to $9.44-1/2 a bushel by 0306 GMT,
having firmed 0.7 percent on Wednesday.
    Soybeans drew support from rains in Argentina that have
stalled the harvest.
    "Soybeans (have) led the sector higher as rain in Argentina
threatened to reproduce the supply disruptions that flooding
caused this time last year," ANZ said in a note.
    There is additional support for soybeans stemming from
expectations of higher demand as China returned from holiday.
    But negative crush margins could dent China's purchases.
Processing margins for imported soybeans in Shandong province
JCI-SBMG-SHDNI are hovering around the lowest since August.
    Soybeans hit a low of $9.36-1/2 a bushel on Tuesday, the
weakest since Sept. 27 as all-time high Brazilian crop hits the
market.
    Corn rose 0.1 percent to $3.65 a bushel and wheat
 rose 0.1 percent to $4.30 a bushel. 
    U.S. Energy Information Administration showed inventories of
corn-based ethanol fuel reached a record high last week as
output fell.
    Informa Economics, a private analytics firm, projected 2017
winter wheat production for the 2017/18 marketing year at 1.285
billion bushels, two trade sources said.
    The figure compares to the U.S. Department of Agriculture's
(USDA) 2016/17 production figure of 1.672 billion bushels. The
USDA is expected to release its first 2017/18 U.S. winter wheat
production estimate on May 10.
    Still, wheat production is likely to rise in the Black Sea
region. Ukraine is expected to harvest 24.2 million tonnes of
wheat in 2017, analyst UkrAgroConsult said on Wednesday, raising
its forecast from 23.5 million tonnes.
    The country's wheat crop could reach 25 million to 26
million tonnes if there are favourable weather conditions.
    Commodity funds were net buyers of CBOT soybean, corn and
wheat futures contracts on Wednesday, traders said.


 Grains prices at  0306 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  430.00  0.25    +0.06%   +0.53%       436.36  59
 CBOT corn   365.00  0.25    +0.07%   -0.75%       366.27  58
 CBOT soy    944.50  0.25    +0.03%   +0.67%       998.24  23
 CBOT rice   10.17   -$0.01  -0.05%   +0.99%       $9.77   79
 WTI crude   50.85   -$0.30  -0.59%   -0.35%       $50.26  62
 Currencies                                                
 Euro/dlr    $1.067  $0.002  +0.20%   -0.04%               
 USD/AUD     0.7536  -0.009  -1.21%   -1.36%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Christian
Schmollinger)
  

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