June 28, 2017 / 2:09 AM / a month ago

GRAINS-Wheat prices firm on worries dry weather could hit U.S. crops

4 Min Read

    SYDNEY, June 28 (Reuters) - U.S. wheat prices edged up on
Wednesday on concerns that dry weather in U.S. growing regions
could damage crops.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board of
Trade rose 0.3 percent to $4.70-1/4 a bushel, having
closed up 0.75 percent on Tuesday. 
    * The most active soybean futures climbed 0.2 percent
to $9.13-1/4 a bushel, after firming 1.2 percent the day before.
    * The most active corn futures were steady at
$3.59-1/4 a bushel, having closed little changed in the previous
session.
    * In its weekly U.S. crop conditions report, the U.S.
Department of Agriculture rated 40 percent of the spring wheat
crop in good-to-excellent condition, down from 41 percent a week
earlier and below market expectations of 41 percent.

    * Continued dry weather is forecast across key U.S. growing
regions, threatening further downgrades.
    * The USDA rated 67 percent of the U.S. corn crop in
good-to-excellent condition, unchanged from last week but below
analyst expectations of 68 percent.
    * Traders were positioning ahead of the USDA's June 30 U.S.
sowing acreage and quarterly stocks reports, which have a
history of jolting markets. Analysts expected the government to
slightly raise its estimate of U.S. 2017 corn plantings and trim
is soybean plantings figure.
         
    MARKET NEWS  
    * The dollar slid to 10-month lows against the euro on
Tuesday after the head of the European Central Bank opened the
door to steps that might begin to reduce the ECB's stimulus and
after a vote on U.S. healthcare legislation was delayed. 
    * Oil prices fell early on Wednesday after a report of
rising U.S. fuel inventories underscored concerns that a
three-year old crude glut is far from over.  
    * The tech-heavy Nasdaq led a broad Wall Street decline on
Tuesday.  
    
     DATA/EVENT AHEAD (GMT) 
0600  Germany              Import prices                    May 
0600  Britain              Nationwide house prices          Jun 
0645  France               Consumer confidence              Jun 
0800  Euro zone            Money supply                     May 
1230  U.S.                 Advance goods trade balance      May 
1400  U.S.                 Pending homes sales              May 
1430  European Central Bank President Mario Draghi      
participates in policy panel at ECB Forum in Portugal 
        
 Grains prices at  0127 GMT
 Contract       Last   Change   Pct chg  Two-day chg    MA 30  RSI 
 CBOT wheat   470.25     1.25    +0.27%       +1.02%   458.83    50
 CBOT corn    359.25     0.00    +0.00%       +0.07%   372.36    29
 CBOT soy     913.25     2.00    +0.22%       +0.72%   930.13    37
 CBOT rice     11.26   -$0.04    -0.31%       +0.67%   $11.15    51
 WTI crude     43.93   -$0.31    -0.70%       +1.27%   $46.72    44
 Currencies                                                        
 Euro/dlr     $1.134   $0.000    +0.01%       +1.42%               
 USD/AUD      0.7599    0.002    +0.22%       +0.22%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  

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