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GRAINS-South America supply pressures soybean prices, wheat dips
January 10, 2017 / 4:01 AM / 8 months ago

GRAINS-South America supply pressures soybean prices, wheat dips

* Soybeans fall for 3 out of 4 days on ample global supply
    * Wheat ticks down after Monday's 1-pct gain, corn eases

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Jan 10 (Reuters) - Chicago soybean futures slid
on Tuesday to fall for three out of four sessions, pressured by
expectations of near-record production in South America.
     Wheat edged lower after gaining almost 1 percent in the
previous session, when prices were underpinned by concerns cold
and dry weather in parts of the U.S. Plains could reduce yields.
    "Globally supplies are piling up and it is hard for oilseed
and grains to rally," said Phin Ziebell, an agribusiness
economist at National Australia Bank.
    "We hear talk about adverse weather in some parts of South
America, but fundamentally nothing much has changed."
    The most-active Chicago Board of Trade soybean contract
 had dropped 0.7 percent to $9.98-1/2 a bushel by 0334 GMT,
having firmed 1.1 percent on Monday.
    Wheat edged down 0.1 percent to $4.26-3/4 a bushel and
corn fell 0.4 percent to $3.58-1/2 a bushel.
    The soybean market gained on Monday as rains in central and
northeastern Argentina threatened to flood soybean fields,
raising fears of crop losses in the world's third largest
exporter of the oilseed. But the latest forecasts showed
improvements in the coming weeks.
    The U.S. Department of Agriculture said on Monday that
soybean export inspections totalled 1.457 million tonnes in the
latest reporting week, exceeding the high-end of trade forecasts
that ranged from 1.1 million tonnes to 1.4 million tonnes.
 
    Cold and dry weather has been supporting wheat prices which
hit a six-week high on Monday. There are expectations for a
cutback in wheat seedings in places such as Kansas.
    There are also concerns about wheat production in Europe due
to deep frosts forecast in Black Sea grain-exporting countries
Romania, Bulgaria, Russia and Ukraine. 
    The USDA will release its wheat plantings report on
Thursday, along with monthly world crop forecasts, quarterly
U.S. grain stock estimates and updated estimates on 2016/17 U.S.
crop production.
    Commodity funds were net buyers of CBOT soybean, corn,
wheat, soyoil and soymeal futures contracts on Monday, traders
said. 
    
 Grains prices at  0334 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  426.75  -0.50   -0.12%   +0.12%       409.41   71
 CBOT corn   358.50  -1.50   -0.42%   -0.76%       354.43   60
 CBOT soy    998.50  -6.75   -0.67%   -1.38%       1029.43  41
 CBOT rice   9.69    $0.00   +0.00%   -0.56%       $9.80    56
 WTI crude   52.10   $0.14   +0.27%   -3.09%       $51.62   46
 Currencies                                                 
 Euro/dlr    $1.062  $0.009  +0.83%   +0.13%                
 USD/AUD     0.7380  0.009   +1.22%   +0.60%                
 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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