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GRAINS-Wheat eases for 2nd day on improved weather, soybeans up for 3rd day
January 11, 2017 / 3:57 AM / 8 months ago

GRAINS-Wheat eases for 2nd day on improved weather, soybeans up for 3rd day

* Wheat dips on crop-friendly weather in northern hemisphere
    * Soybeans extend gains into 3rd session, corn down for 2nd
day

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 11 (Reuters) - Chicago wheat futures slid for
a second session on Wednesday, easing further from a six-week
high reached earlier this week as improved weather forecasts for
the U.S. Plains and other producing countries weighed on the
market.
    Soybeans rose for a third consecutive session but gains were
limited ahead of a widely watched supply-demand report from the
U.S. Department of Agriculture due on Thursday.
    The Chicago Board Of Trade most-active wheat contract 
slid 0.2 percent to $4.25-3/4 a bushel, having closed down 0.1
percent on Tuesday.
    Soybeans added 0.2 percent to $10.15-3/4 a bushel and
corn fell 0.1 percent to $3.57-3/4 a bushel.
    The U.S. wheat market is being weighed down by expectations
of beneficial rains across the U.S. Plains which have been
suffering from dryness.
    "We saw some strong gains in the wheat market last week, but
now the weather seems to be improving across the northern
hemisphere," said Kaname Gokon at brokerage Okato Shoji in
Tokyo.
    "Overall we expect sideways trading before the USDA reports
on Thursday."
    In Ukraine and Russia, a substantial snow layer has
protected winter crops from severe frosts which came this
weekend, analyst and weather forecasters said on Tuesday.
 
    But expectations that the USDA reports on Thursday will show
a sharp cutback in U.S. winter wheat seedings kept the declines
in check.
    Soybeans are underpinned by adverse weather in parts of
Argentina even though forecasts called for improved conditions. 
    Dry conditions forecast for Argentina in coming days are
expected to help soy and corn crops after heavy rains in late
December and early January left 10 percent of its central farm
belt with excessive moisture, local weather experts said on
Tuesday.
    In news, China has increased dumping tariffs on imports of a
U.S. animal feed ingredient known as distillers' dried grains
from levels first proposed last year, potentially escalating a
trade spat between the world's two largest economies.
 
    Commodity funds were net sellers of CBOT corn and wheat
futures on Tuesday, traders said. They were net buyers of CBOT
soybeans, soymeal and soyoil. 
    
 Grains prices at  0317 GMT
 Contract    Last     Change  Pct chg  Two-day chg   MA 30    RSI
 CBOT wheat  425.75   -1.00   -0.23%   -             409.63   70
 CBOT corn   357.75   -0.50   -0.14%   -             354.41   59
 CBOT soy    1015.75  2.00    +0.20%   -             1028.32  50
 CBOT rice   9.69     $0.01   +0.16%   -             $9.79    54
 WTI crude   50.97    $0.15   +0.30%   -             $51.91   35
 Currencies                                                   
 Euro/dlr    $1.054   $0.001  +0.09%   -                      
 USD/AUD     0.7370   0.008   +1.08%   -                      
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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