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GRAINS-Soybean prices rise from 1-yr low, ample supply caps gains
April 12, 2017 / 1:29 AM / 5 months ago

GRAINS-Soybean prices rise from 1-yr low, ample supply caps gains

    SINGAPORE, April 12 (Reuters) - Chicago soybean futures rose
on Wednesday to move away from a one-year low hit the session
before when the U.S. government lifted its estimates for global
supplies.
    Corn and wheat edged higher on bargain-buying, although
forecasts of abundant supplies kept a lid on markets.
    
    FUNDAMENTALS
    * The soybean market is struggling under the pressure of a
global supply glut. The U.S. Department of Agriculture raised
its forecast of global soybean stocks at the end of the 2016-17
marketing year to 87.41 million tonnes, from 82.82 million in
March and well above an average of trade estimates for 83.91
million.
    * The figure reflected rising crop estimates for South
America's soy harvest. The agency pegged Brazil's crop at 111
million tonnes, up from the 108 million it estimated last month.
    * Brazil's agricultural statistics agency Conab also raised
its estimate of the soybean crop to 110.2 million tonnes, from
107.6 million in March.
    * Corn futures also faced pressure from rising estimates on
South America's corn output.
    * The USDA left its forecast of U.S. 2016-17 corn exports
unchanged at 2.225 billion bushels.
    * The USDA raised its forecasts for U.S. and global wheat
inventories at the end of the 2016-17 marketing year. The
government bumped up its forecast of domestic wheat ending
stocks to 1.159 billion bushels, a near 30-year high.
    * A sunny week ahead in Argentina's Pampas grains belt
should allow farmers to resume corn and soy harvesting that was
interrupted over recent days by heavy rains, local
meteorologists said on Tuesday.
    * Some 700,000 hectares of prime soybean and corn area have
been lost to bad weather in the 2016/17 crop year, according to
the Buenos Aires Grains Exchange. Harvesting combines got stuck
in soggy ground over recent days while cargo trucks were delayed
by flooded roads.
    * Commodity funds were net sellers of CBOT corn and soybean
futures contracts on Tuesday and net buyers of wheat, traders
said.
    
    MARKET NEWS
    * Investors ducked for cover on Wednesday as a drumbeat of
alarming geopolitical news sent the safe-haven yen and gold to
five-month highs and yields on top-rated sovereign bonds to
their lowest for the year so far.
    
    DATA AHEAD (GMT)
0130    China     PPI                    March
0130    China     CPI                    March 
0600    Germany   Wholesale prices       March
0830    U.K.      ILO unemployment rate  Feb 
1230    U.S.      Import prices          March 

 Grains prices at  0112 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  434.00  0.75    +0.17%   +2.36%       433.88  64
 CBOT corn   368.25  1.75    +0.48%   +2.43%       365.39  61
 CBOT soy    949.25  10.00   +1.06%   +0.77%       987.23  40
 CBOT rice   10.21   -$0.06  -0.58%   -0.24%       $9.85   73
 WTI crude   53.59   $0.19   +0.36%   +2.58%       $50.18  81
 Currencies                                                
 Euro/dlr    $1.061  $0.002  +0.21%   -0.30%               
 USD/AUD     0.7490  -0.001  -0.07%   -0.73%               
 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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