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GRAINS-Soybeans face 2nd week of decline as large S.America supply looms
December 9, 2016 / 2:27 AM / in 10 months

GRAINS-Soybeans face 2nd week of decline as large S.America supply looms

SINGAPORE, Dec 9 (Reuters) - Chicago soybean futures lost
more ground on Friday, with the market set for a second week of
losses as an improving outlook for weather in Argentina boosted
hopes for another year of bumper supplies.
    Wheat edged lower but the market is set to end the week on a
positive note on expectations of strong demand from India, which
scrapped import duty on Thursday to boost purchases. 
    
    FUNDAMENTALS
    * The Chicago Board of Trade most-active soybean contract
 is down 0.5 percent this week after dropping 1.8 percent
last week, while wheat has risen 0.7 percent after losing
3.6 percent last week.
    * Corn is on track for 2.1 percent rise, gaining for
three out of four weeks.
    * Dry parts of Argentina may see rains within the next two
weeks, meteorologists said, buoying hopes of record production
in 2017. Brazil's government crop supply agency estimated the
country's soy harvest at a record 102.45 million tonnes.
 
    * The U.S. Department of Agriculture in its monthly
supply-demand report on Friday is expected to boost supply
expectations for Brazil and Argentina soybean production and
narrowly reduce U.S. ending stocks, according to a Reuters'
analyst poll.
    * U.S. President-elect Donald Trump's nomination of Oklahoma
Attorney General Scott Pruitt to run the nation's Environmental
Protection Agency sparked worries of reduced demand for
corn-based ethanol and soy-based biodiesel.
    * The wheat market is being underpinned by India's move to
scrap its 10 percent import duty on wheat after droughts in the
past two years depleted stocks and raised prices. The move is
likely to lift the nation's overseas purchases to their highest
in a decade.
    * India has been snapping up wheat cargoes from Australia
and Ukraine in recent months with purchases since June estimated
at about 1.5 million tonnes.
    * Commodity funds were net sellers of CBOT soybean and corn
futures contracts on Thursday and net buyers of wheat, traders
said.
    * Trader estimates of net fund selling in soybeans ranged
from 14,000 to 15,000 contracts, and corn from 6,000 to 12,000
contracts. Estimates of net fund buying in wheat ranged from
4,000 to 4,500 contracts.
    
    MARKET NEWS
    * Asian shares flatlined on Friday but were on track for
robust weekly gains, while the euro caught its breath after
sliding when the European Central Bank trimmed the size of its
asset purchase programme and also extended it for longer than
many had expected. 
    
    DATA AHEAD (GMT)
0130 China Consumer prices Nov
0130 China Producer prices Nov
0700 Germany Trade data Oct
0745 France Industrial output Oct
1500 U.S. Univ of Michigan sentiment index Dec

 Grains prices at  0150 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  407.25   -1.00    -0.24%   +0.12%       422.43   48
 CBOT corn   354.75   1.25     +0.35%   -1.60%       356.40   51
 CBOT soy    1024.50  -2.50    -0.24%   -2.22%       1013.90  44
 CBOT rice   9.77     $0.00    -0.05%   -1.96%       $9.76    50
 WTI crude   50.98    $0.14    +0.28%   +2.43%       $47.12   62
 Currencies                                                   
 Euro/dlr    $1.060   -$0.011  -1.06%   -1.48%                
 USD/AUD     0.7447   -0.001   -0.17%   -0.33%                
 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Joseph Radford)

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