June 1, 2017 / 3:24 AM / 2 months ago

GRAINS-Soybeans up for 2nd day as Argentina port strike threatens supply

4 Min Read

    * Soybeans underpinned by Argentina port strike
    * Corn prices dip, lower crop condition rating limits losses

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, June 1 (Reuters) - Chicago soybean futures edged
higher on Thursday, rising for a second session as a port strike
in Argentina threatened to disrupt supplies from the world's
third largest exporter of the oilseed.
    Corn prices eased but stayed near an eight-day high touched
the day before, with losses curbed by a U.S. government report
that pegged the condition of crops below market expectations.
    The Chicago Board of Trade most-active soybean contract
 had advanced 0.1 percent to $9.16-3/4 a bushel by 0255
GMT, after closing up 0.4 percent on Wednesday.
    Corn fell 0.1 percent to $3.71-1/2 a bushel. The
market rose 1.4 percent in the previous session to its strongest
since May 22 at $3.76-1/2 a bushel.
    Wheat rose 0.3 percent to $4.30-1/2 a bushel, having
closed the last session little changed.
    "The Argentina port strike is supporting soybeans, the
situation is not good for soybean supplies," said Kaname Gokon
from Tokyo brokerage Okato Shoji.
    "We don't expect huge gains though as Brazilian exports are
flooding the market."
    Private port grains inspectors in Argentina started a
48-hour wage strike on Wednesday, after government health
inspectors called a three-day work stoppage a day earlier, also
over pay.
    Wednesday's strike by the URGARA inspectors' union will halt
movement of soymeal and other grains byproducts, while the work
stoppage announced on Tuesday by government sanitary inspection
unit Senasa stopped movement of soybeans and other raw crops.
    Corn was supported after the U.S. Department of
Agriculture's first weekly corn condition ratings for 2017,
which showed 65 percent of the crop was in good to excellent
condition.
    The figure fell below an average of analyst expectations for
68 percent and was down from 72 percent a year ago. It raised
concerns that the crop might not be able to meet the
government's initial yield projection of 170.7 bushels per acre,
based on historical trends.
    The USDA rated 50 percent of the U.S. winter wheat crop in
good to excellent condition, down from 52 percent the previous
week.
    Egypt's state grain buyer GASC bought 180,000 tonnes of
wheat in an international purchase tender, including 120,000
tonnes of Russian and 60,000 tonnes of Romanian origin. GASC
passed on offers of U.S. hard red winter wheat.
    Commodity funds were net buyers of CBOT corn and soybean
futures contracts on Wednesday.

 Grains prices at  0255 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  430.50  1.25    +0.29%   +0.23%       432.54  53
 CBOT corn   371.50  -0.50   -0.13%   +1.23%       369.68  54
 CBOT soy    916.75  0.75    +0.08%   +0.44%       956.83  26
 CBOT rice   11.11   -$0.02  -0.18%   -0.67%       $10.34  65
 WTI crude   48.70   $0.38   +0.79%   -1.93%       $48.77  43
 Currencies                                                
 Euro/dlr    $1.124  $0.000  +0.01%   +0.53%               
 USD/AUD     0.7386  -0.004  -0.58%   -1.05%               
 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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