June 28, 2017 / 4:20 AM / 2 months ago

GRAINS-Wheat prices firm on fears dry weather could damage crops

    * Wheat extends two-day gains to more than 1 pct
    * USDA pegs condition of crop below market expectations
    * Corn edges higher, soybean prices firm

    By Colin Packham
    SYDNEY, June 28 (Reuters) - U.S. wheat edged up on Wednesday
to extend two-day gains to more than 1 percent, with concerns
that dry weather would hit crops in key producing regions.
    Soybean prices crept higher to extend gains into a fourth
consecutive sessions, while corn firmed.
    The most active wheat futures on the Chicago Board of Trade
 had risen 0.5 percent to $4.71-1/4 a bushel by 0337 GMT,
having closed up 0.75 percent on Tuesday.
    "A USDA report suggested significant chunks of the U.S. and,
by dint of proximity, Canada's, spring wheat crop was in poor
condition," said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia.
    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.
    "Higher temperatures mean crops in the driest spring wheat
regions will begin to suffer more from the lack of soil
moisture," said Gorey.  
    The most active soybean futures climbed 0.1 percent to
$9.12-1/4 a bushel, after firming 1.2 percent the day before.
    The most active corn futures rose 0.1 percent to
$3.59-1/2 a bushel, having closed little changed in the previous
session.
    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.
    
 Grains prices at  0337 GMT
 Contract       Last   Change   Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat   471.25     2.25    +0.48%       +1.24%  458.86    51
 CBOT corn    359.50     0.25    +0.07%       +0.14%  372.37    29
 CBOT soy     912.25     1.00    +0.11%       +0.61%  930.09    36
 CBOT rice     11.26   -$0.03    -0.27%       +0.72%  $11.15    51
 WTI crude     44.17   -$0.07    -0.16%       +1.82%  $46.73    47
 Currencies                                                       
 Euro/dlr     $1.135   $0.001    +0.10%       +1.51%              
 USD/AUD      0.7605    0.002    +0.30%       +0.30%              
 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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