December 27, 2016 / 6:33 AM / 7 months ago

GRAINS-Soybean futures firm after weekly loss; Argentine rains miss key area

4 Min Read

* Soybeans rise on concerns over Argentina drought
    * Wheat up over 1 pct as India seen buying more shipments

 (Updates prices)
    By Naveen Thukral
    SINGAPORE, Dec 27 (Reuters) - Chicago soybean futures rose
on Tuesday after suffering deep losses last week, with the
market underpinned by concerns over poor rainfall affecting
Argentina's key crop areas.
    Wheat jumped 1.1 percent on expectations of strong demand
from India, where two years of lower output has depleted
stockpiles.
    "Grains and soybeans have opened higher as it is mainly
short-covering after the Christmas holiday break," said Kaname
Gokon at brokerage Okato Shoji in Tokyo.
    "The drought in Argentina is becoming an issue. If there is
crop damage, we could see some more gains."
    The Chicago Board of Trade most-active soybean contract
 had risen 0.9 percent to $9.97-1/2 a bushel by 0616 GMT
and wheat had added 1.1 percent to $3.98 a bushel and corn
 had gained 0.7 percent to $3.48-1/4 a bushel.
    Heavy rains that pelted parts of Argentina over the weekend
did not reach the southeastern part of the bread-basket province
of Buenos Aires, where dryness is threatening to dent soybean
production, local farm weather experts said on Monday.
 
    Argentina aims to increase farm production under President
Mauricio Macri, who has implemented a slew of market-friendly
reforms since taking office a year ago. But the weather has not
cooperated with farmers in some key growing areas.
    The global wheat market, which has faced pressure from
plentiful supplies, is finding a floor with India - the world's
second-largest consumer - expected to import larger volumes.
    India's wheat stocks in April next year, when the new season
begins, are likely to be at their lowest levels in more than a
decade after two successive droughts drained the soil of
moisture and cut output. 
    Lower stocks will force India to import about 6 million
tonnes of wheat in the fiscal years ending March 2017 and March
2018 to curb local prices, which have leapt 40 percent since the
current year began in April, traders and industry experts said.
    Commodity funds were net sellers of Chicago Board of Trade
soybean, soyoil, soymeal, corn and wheat futures contracts on
Friday. 
    
 Grains prices at  0616 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  398.00  4.50     +1.14%   -0.38%       412.83   49
 CBOT corn   348.25  2.50     +0.72%   +0.29%       354.35   46
 CBOT soy    997.50  8.50     +0.86%   -0.92%       1020.87  37
 CBOT rice   9.45    -$0.01   -0.11%   +0.91%       $9.63    29
 WTI crude   53.05   $0.03    +0.06%   +0.19%       $49.67   68
 Currencies                                                  
 Euro/dlr    $1.045  -$0.001  -0.08%   -0.09%                
 USD/AUD     0.7186  0.000    +0.03%   +0.08%                
 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
and Subhranshu Sahu)

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