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GRAINS-U.S. spring wheat set for biggest monthly gain since 2010 on drought
June 30, 2017 / 3:57 AM / 3 months ago

GRAINS-U.S. spring wheat set for biggest monthly gain since 2010 on drought

    * Spring wheat up over 30 pct in June, biggest rise since
2010
    * Chicago wheat hits one-year high at $5.07-1/4 a bushel
    * CBOT corn, soybeans also set for weekly rise

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 30 (Reuters) - U.S. spring wheat rose for a
seventh straight session on Friday, trading near last session's
three-year high as fears of output losses in key growing areas
of the United States pushed the market towards its biggest
monthly gain since 2010. 
    Spring wheat on the Minneapolis Grain Exchange has
is up more than 30 percent this month, its biggest monthly rally
since July 2010. 
    This has swept Chicago Board of Trade (CBOT) wheat to a
one-year peak, buoying corn and soybeans as well. 
    The most-active wheat futures on the CBOT added 2.2
percent on Friday to a gain of nearly 5 percent in the previous
session to hit $5.07-1/4 a bushel, its highest since June last
year.
    Wheat has so far risen 18 percent in June, the biggest
monthly rise in two years. 
    "The market is cutting their high-protein wheat crop
forecasts," said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia. 
    "Many will be sceptical that U.S. winter wheat prices should
be this high and rising. We are approaching the heaviest point
of the 2017 winter crop harvest and that is being added to
comfortable supply."
    Corn is up 3.7 percent this week while soybeans
have added more than 1 percent after both markets lost ground
last week. For the month, corn and soybeans are little changed.
    Drought conditions in the northern U.S. Plains worsened in
the past week and there are forecasts for more hot and dry
weather that could crimp the harvest.
    The latest weekly U.S. Drought Monitor, released Thursday by
a consortium of climatologists, showed "extreme drought"
covering 25 percent of North Dakota, by far the top U.S. spring
wheat producer, up from about 8 percent a week ago.
    As the world struggles with a glut of grain that has filled
inventories to record-highs and cast a wet blanket over the corn
and soybean markets, the shortage of high-quality spring wheat
has taken markets by surprise.
    The U.S. Department of Agriculture was due to release
updated planting figures on Friday. Analysts expect the USDA to
lower its U.S. spring wheat planting estimate to 11.2 million
acres, from a March forecast of 11.3 million.
    
 Grains prices at  0349 GMT
 Contract      Last  Change  Pct chg  Two-day chg   MA 30   RSI
 CBOT wheat  506.50   10.50   +2.12%       +7.08%  462.88    78
 CBOT corn   371.50    2.00   +0.54%       +4.13%  372.07    39
 CBOT soy    927.00    2.25   +0.24%       +0.41%  936.49    44
 CBOT rice    11.89  -$0.01   -0.13%       +1.28%  $11.52    66
 WTI crude    45.21   $0.28   +0.62%       +1.05%  $46.47    57
 Currencies                                                    
 Euro/dlr    $1.144  $0.000   -0.02%       +0.55%              
 USD/AUD     0.7698   0.002   +0.21%       +0.76%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD
 per hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Tom Hogue)
  

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