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GRAINS-Corn, wheat rebound after deep losses; soybeans firm
October 13, 2016 / 3:42 AM / a year ago

GRAINS-Corn, wheat rebound after deep losses; soybeans firm

* Wheat firms after suffering biggest loss since late Aug.
    * Soybeans up after hitting lowest since Sept. 30
    * Gains in soybeans limited as USDA raises output f'cast

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 13 (Reuters) - Chicago corn and wheat futures
rebounded on Thursday after dropping more than 2 percent in the
last session after U.S. government estimates of bin-busting
supplies. 
    Soybeans ticked up after dropping on Wednesday to the lowest
since the end of September as the U.S. Department of Agriculture
(USDA) raised its production forecast. 
    The Chicago Board Of Trade most-active corn contract 
added 0.4 percent to $3.38-1/4 a bushel by 0301 GMT, having
closed down 2.5 percent in the previous session when prices fell
to a low of $3.36-1/2 a bushel, the weakest since Oct. 3.
    Soybeans rose 0.3 percent to $9.48-1/4 a bushel,
having closed down 0.9 percent in the last session and wheat
 gained 0.4 percent to $3.98-1/2 a bushel, having closed
down 2.6 percent on Wednesday.
    The USDA lowered its estimate of the U.S. 2016 corn yield to
173.4 bushels per acre, from 174.4 in September, but that would
still be the highest on record, if realized. 
    It raised its U.S. soybean yield estimate to a record-high
51.4 bushels per acre, roughly in line with analyst
expectations.
    The agency raised its forecast of U.S. wheat ending stocks
to 1.138 billion bushels, the most since 1987-88 marketing year,
if realized.
    Analysts said the focus will now shift to next year's crops.
    "How much cheaper can grains get? I think we have seen the
bottom," said Ole Houe, an analyst with brokerage IKON
Commodities in Sydney. 
    "U.S. harvest is half over, now we have to shift thinking
from having grown massive crops to what is in store next year.
There are concerns about Black Sea and South American weather."
    Farmers in Brazil and Argentina have started planting corn
and soybeans which will be harvested early next year. There have
been concerns over dryness in Brazil and Ukraine. 
    In news, China approved 2017 low-tariff import quotas for
grains, the country's state planner said on Thursday, although
ample domestic supplies mean the country is unlikely to buy
large volumes.
    The quotas, carrying tariffs of just 1 percent, remain
unchanged from previous years, with the wheat quota at 9.6
million tonnes and corn at 7.2 million tonnes.
    Commodity funds were net sellers of CBOT corn, soybean and
wheat futures on Wednesday. Trade estimates of net fund selling
in corn ranged from 10,000 to 25,000 contracts, in soybeans from
4,000 to 11,000 contracts and in wheat from 4,000 to 6,000
contracts. 
    
 Grains prices at  0301 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  398.50  1.75     +0.44%   -1.30%       401.24  50
 CBOT corn   338.25  1.25     +0.37%   -1.46%       335.78  50
 CBOT soy    948.25  2.75     +0.29%   -0.65%       959.38  42
 CBOT rice   10.16   -$0.02   -0.20%   -0.73%       $9.81   59
 WTI crude   49.66   -$0.52   -1.04%   -2.22%       $46.64  57
 Currencies                                                 
 Euro/dlr    $1.103  -$0.017  -1.51%   -1.07%               
 USD/AUD     0.7519  -0.006   -0.74%   -0.83%               
 
 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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