June 15, 2017 / 2:46 AM / 3 months ago

GRAINS-Soybeans dip for 2nd day as rains seen improving U.S. crops

    * Soybeans lose more ground, corn ticks up after declining
    * Wheat firms after Wednesday's decline
    * Much needed rains for spring wheat in U.S., Canada

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 15 (Reuters) - Chicago soybean futures slid
for a second day on Thursday, while corn edged up after easing
in the last session as ample supplies from South America and
forecasts of rains in the U.S. grain belt weighed on prices.
    Wheat edged higher, recouping some of previous session's
losses, but the market remained under pressure from rains easing
drought concerns for the U.S. spring wheat crop.
    The Chicago Board Of Trade most-active soybean contract
 gave up 0.2 percent to $9.30-1/4 a bushel by 0225 GMT,
having closed down 0.1 percent on Wednesday.
    Wheat rose 0.2 percent to $4.43-3/4 a bushel, having
closed down 0.4 percent on Wednesday and corn added 0.1
percent to $3.77-1/2 a bushel, having closed down 1 percent in
the previous session.
    "There were concerns about dryness for spring wheat crop but
rains are helping ease some of those issues," said Phin Ziebell,
an agribusiness economist at National Australia Bank.
    "Oil prices have tanked and that is going to keep pressure
on corn as there will be less incentive to use it to make
ethanol."
    Corn often tracks moves in the crude oil market, with
increasing use of crops in making alternative fuels.
    Wheat edged down on Wednesday after showers fell through
spring wheat growing areas in the northern U.S. Plains and the
Canadian prairies, benefiting fields where drought conditions
had been expanding.
    But further rains are needed amid a sustained fall in the
condition of the spring wheat crop.
    The U.S. Department of Agriculture assessed the spring wheat
crop at 45 percent good-to-excellent as of June 4, down 10
percentage points from a week earlier. Analysts had been
expecting a good-to-excellent rating of 53 percent. 
    Plentiful supplies from South America continue to cap
prices.
    Brazil's agricultural statistics and supply agency Conab
last week raised for the sixth time this year its estimate for
the country's 2016/17 soybean crop, now seen at 113.92 million
tonnes, up from 113 million tonnes in May's forecast.
    The agency said total corn output in the season should reach
93.83 million tonnes, above the previous 92.83 million tonnes
estimate due to near-perfect weather.
    Commodity funds were net sellers of CBOT corn, wheat and
soybean futures contracts on Wednesday, traders said.


 Grains prices at  0225 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  443.75  0.75    +0.17%   -0.28%       434.33  57
 CBOT corn   377.50  0.50    +0.13%   -0.92%       373.07  50
 CBOT soy    930.25  -1.50   -0.16%   -0.24%       945.44  46
 CBOT rice   11.06   $0.03   +0.23%   -1.78%       $10.83  51
 WTI crude   44.68   -$0.05  -0.11%   -3.83%       $47.81  29
 Currencies                                                
 Euro/dlr    $1.122  $0.001  +0.04%   +0.07%               
 USD/AUD     0.7617  0.003   +0.42%   +1.09%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Biju Dwarakanath)
  

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