June 5, 2017 / 3:31 AM / 3 months ago

GRAINS-Wheat up for 2nd day as dryness threatens US crop; corn, soybean prices firm

    * Wheat up half a percent on forecasts of hot, dry U.S.
weather
    * Soybeans firm on strong demand
    * But record S.America crop curbs soybean upside

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, June 5 (Reuters) - Chicago wheat futures rose for
a second session on Monday, with prices underpinned by forecasts
that hot and dry weather could hit U.S. production.
    Soybean prices gained more ground on strong demand, although
gains were trimmed by record South American supplies.
    The Chicago Board of Trade most-active wheat contract
had climbed 0.5 percent to $4.31-3/4 a bushel by 0304 GMT,
having closed up 0.1 percent on Friday. 
    Soybean futures rose 0.2 percent to $9.23 a bushel and
corn advanced 0.3 percent to $3.74 a bushel.
    "Dryness and hot weather are causing concerns for the U.S.
wheat crop. Adverse weather will continue to support wheat
prices this week," said Kaname Gokon from Tokyo brokerage Okato
Shoji.
    "We could see prices rise above $4.35 a bushel this week."
    Wheat was supported by forecasts of warm and dry weather in
the northern U.S. Plains, potentially stressing newly planted
spring wheat, and as excessive rains have swamped fields in the
southern Plains and the Midwest.
    The U.S. Department of Agriculture has rated 62 percent of
the U.S. spring wheat crop as good to excellent, down
significantly from 79 percent a year earlier.
    Weekly USDA export sales data for soybeans came in above
trade expectations, and the government through its daily
reporting system said private exporters sold 200,000 tonnes of
U.S. soybeans to Spain, which has struggled with drought.

    But plentiful supplies capped gains in soybean markets.
    Informa Economics, a private analytics firm, on Friday
raised its estimate of Brazil's 2016/17 soybean harvest to 114.5
million tonnes, from 113 million last month, trade sources said.

    In a monthly report, the firm also raised its forecast of
Argentina's 2016/17 soybean crop to 58 million tonnes, from 56.8
million in May.
    Large speculators increased their net short position in CBOT
corn futures in the week to May 30, regulatory data released on
Friday showed.
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and increased their net short
position in soybeans.

 Grains prices at  0304 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  431.75  2.25     +0.52%   +0.64%       433.04  56
 CBOT corn   374.00  1.25     +0.34%   +0.94%       370.30  57
 CBOT soy    923.00  1.75     +0.19%   +1.18%       954.19  38
 CBOT rice   11.18   $0.06    +0.54%   +1.18%       $10.41  69
 WTI crude   47.86   $0.20    +0.42%   -1.03%       $48.62  36
 Currencies                                                 
 Euro/dlr    $1.127  -$0.001  -0.06%   +0.55%               
 USD/AUD     0.7453  0.001    +0.16%   +1.10%               
 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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