* Soybeans lower on outlook for record Brazil, Argentina
* India to boost wheat shipments after abolishing import
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Dec 9 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 an import duty on Thursday to boost purchases.
The Chicago Board of Trade most-active soybean contract
is down 0.3 percent this week after dropping 1.8 percent
last week. Wheat has risen 0.5 percent this week after
dropping 3.6 percent last week.
Corn is on track for a 2 percent rise and a gain for
three out of four weeks.
"The main factor which was driving (soybean) prices higher
was strong Chinese demand but if you look at the estimates no
one has increased their outlook for China's annual purchases,"
said Rajesh Singla, head of agriculture research at Societe
"Overall there are forecasts of record production in Brazil
which means supplies will be ample next year."
Strong Chinese demand lifted soybean prices last week to
their highest in more than four months, but the market
subsequently became weighed down by the prospects of record
production in South America.
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'
Also, 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 domestic 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
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.
Grains prices at 0348 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 406.25 -2.00 -0.49% -0.12% 422.39 48
CBOT corn 354.25 0.75 +0.21% -1.73% 356.38 55
CBOT soy 1024.75 -2.25 -0.22% -2.20% 1013.91 45
CBOT rice 9.77 $0.00 +0.00% -1.91% $9.76 50
WTI crude 50.91 $0.07 +0.14% +2.29% $47.12 61
Euro/dlr $1.060 -$0.012 -1.08% -1.50%
USD/AUD 0.7453 -0.001 -0.09% -0.25%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Joseph Radford and Tom