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GRAINS-Wheat rebounds as USDA rates spring crop condition below expectations
June 13, 2017 / 3:35 AM / 3 months ago

GRAINS-Wheat rebounds as USDA rates spring crop condition below expectations

    * U.S. spring wheat ratings fall sharply due to dry weather
    * Corn prices firm after deep losses, rain forecast limits
gain

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, June 13 (Reuters) - Chicago wheat futures bounced
back on Tuesday, rising nearly 1 percent as the condition of the
U.S. spring crop was pegged well behind market expectations,
stoking fears of production losses.
    Corn gained 0.4 percent after last session's deep losses
triggered by forecasts of rains that eased concerns over dry
weather in the U.S. Midwest.
    The Chicago Board of Trade most-active wheat contract
had climbed 0.8 percent to $4.37-1/4 a bushel by 0303 GMT, after
closing down 2.6 percent on Tuesday when prices dropped to
$4.31-1/4 a bushel, the weakest since June 6.
    Corn added 0.3 percent to $3.78-1/4 a bushel, having
closed down 2.7 percent in the previous session. Soybeans
rose 0.1 percent to $9.32-1/4 a bushel, after falling 1.1
percent on Monday.
    "Dryness for the U.S. spring wheat crop has been pretty
significant, so ratings are unlikely to improve," said an
agricultural commodities analyst.
    "There might be some rain in the next few days but the
longer-term weather forecast, for the next six to 14 days, looks
dry."
    The U.S. Department of Agriculture pegged the condition of
U.S. spring wheat crop at 45 percent good-to-excellent, well
behind market forecasts for 53.
    Last week, 55 percent of the spring wheat crop was rated
good-to-excellent and at this time last year it was 79 percent
good-to-excellent.    
    U.S. soybeans were pegged at 66 percent good-to-excellent,
below forecasts for 70 percent. U.S. corn was at 67
percent-good-to excellent, matching analyst forecasts.
    Forecasts of rains for corn and soybean crops could limit
the upside potential for prices.
    Confidence is building on expected rainfall east of the
Mississippi River, but corn and soybeans in the Plains and
western Midwest look set to miss out, Thomson Reuters
Agriculture Research analysts said in an update on Monday.

    Commodity funds were net sellers of CBOT corn, soybean and
wheat futures on Monday. They were also net sellers in soyoil
and soymeal, traders said.

 Grains prices at  0303 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  437.25  3.25    +0.75%   -2.67%       435.52  50
 CBOT corn   378.25  1.00    +0.27%   -1.94%       372.73  52
 CBOT soy    932.25  1.00    +0.11%   -0.61%       949.47  48
 CBOT rice   11.29   -$0.02  -0.13%   +0.49%       $10.69  71
 WTI crude   46.27   $0.19   +0.41%   +0.96%       $48.01  36
 Currencies                                                
 Euro/dlr    $1.119  $0.000  +0.00%   -0.18%               
 USD/AUD     0.7556  0.003   +0.40%   +0.19%               
 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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