June 16, 2017 / 3:22 AM / a month ago

GRAINS-Wheat rises to six-week high on concerns of dry weather on U.S. crop

4 Min Read

    * Wheat up 2.7 pct this week, on track for 2nd week of gains
    * Dry weather in key U.S. spring wheat regions may reduce
yields
    * Soybeans rise for 2nd day on higher U.S. processing

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 16 (Reuters) - Chicago wheat climbed to its
highest since early May on Friday with the market on track for a
second week of gains as dry weather in parts of North America
threatens to reduce yields.
    Soybeans gained more ground on the back of strong demand in
the United States with higher-than-expected crushing in May. 
    The Chicago Board Of Trade most-active wheat contract
is up 2.7 percent this week and has risen by 6.6 percent in the
past two weeks - the biggest fortnightly rally since Feb. 10.
    Wheat earlier rose to as much as $4.58-1/4 a bushel, the
highest since May 2.
    Soybeans gained 0.5 percent $9.39 a bushel. For the
week, the market is down 0.2 percent, after gaining more than 2
percent last week. Corn is down 2.2 percent this week,
losing half of the gains made in the previous week.
    Wheat is rallying on concerns that recent dry weather will
curb the output of the U.S. spring crop.
    "North American spring wheat crops remain too dry and
weather forecasters do not expect that to change," said Tobin
Gorey, director of agricultural strategy at Commonwealth Bank of
Australia in Sydney.
    "Forecasters are looking for a rain event in the region from
today into the weekend but do not expect enough rain to make a
difference."
    It is not just the U.S. either. Consultants Strategie Grains
on Thursday cut its estimates for most grain crops in the
European Union because of hot and dry weather across most of
Europe in recent weeks.
    U.S. soybean crushings were heavier than expected during
May, with plants in the eastern Midwest, Iowa and the Southwest
sharply raising their pace of processing during the month, the
National Oilseed Processors Association said on Thursday.

    It said its members crushed 149.246 million bushels during
May, the second-busiest May on record.
    Investors in the agricultural markets are also keeping a
close watch on a port workers strike in Argentina.
    More than 20 grains cargo ships had to drop anchor along
Argentina's Parana River on Thursday due to a wage strike by
members of the CGT San Lorenzo port workers union, a spokesman
for the country's CIARA-CEC export company chamber said.
    Commodity funds were net buyers of CBOT corn, wheat and
soybean futures contracts on Thursday, traders said. They also
were net buyers of soyoil and net sellers of soymeal.

    
 Grains prices at  0238 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  457.75  4.00    +0.88%   +3.33%       435.33  71
 CBOT corn   379.25  -0.25   -0.07%   +0.60%       373.56  54
 CBOT soy    939.00  4.25    +0.45%   +0.78%       944.42  60
 CBOT rice   11.45   -$0.02  -0.22%   +3.81%       $10.89  68
 WTI crude   44.45   -$0.01  -0.02%   -0.63%       $47.77  27
 Currencies                                                
 Euro/dlr    $1.115  $0.001  +0.05%   -0.61%               
 USD/AUD     0.7595  0.002   +0.25%   +0.13%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Christian
Schmollinger)
  

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