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GRAINS-Soybeans eye biggest weekly gain since Nov as U.S. cuts stocks estimate
January 13, 2017 / 3:41 AM / in 9 months

GRAINS-Soybeans eye biggest weekly gain since Nov as U.S. cuts stocks estimate

* Soybeans up 4.3 pct this week, biggest rally since late
November
    * U.S. trims estimates for soybean crop yields, stockpiles
    * Farmers cut wheat plantings to lowest in over century

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 13 (Reuters) - Chicago soybean futures were
on track on Friday for their biggest weekly gain since late
November, with prices underpinned by the U.S. government
reducing its estimate for yields and stockpiles. 
    Wheat is on line to post a third week of gains after the
U.S. Department of Agriculture said farmers slashed their winter
wheat plantings to the lowest in more than a century.
    The USDA trimmed its estimate of the U.S. 2016 soybean yield
to 52.1 bushels per acre, still an all-time high, but down from
its previous figure of 52.5 bushels per acre and below an
average of trade estimates for 52.7 bushels. 
    The agency also lowered its forecast of U.S. 2016/17 soybean
ending stocks to 420 million bushels, from 480 million bushels
last month. 
    The Chicago Board of Trade most-active soybean contract
 has risen 4.3 percent this week, the highest since the
week ended November 25. Wheat is up about half a percent,
rising for a third week in a row, while corn is little
changed after climbing for two weeks. 
    "The reduction in wheat acreage in the U.S. is big, if
prices stay low for this long it is going to be big disadvantage
for farmers," said Phin Ziebell, agribusiness economist,
National Australia Bank.
    "We have had a number of years of high supplies, it will be
interesting to see at what point farmers start reducing
plantings."
    The CBOT wheat found support on Thursday after the USDA
pegged U.S. winter wheat plantings for harvest in 2017 at 32.4
million acres, down 10 percent from a year ago and the least in
more than a century. Analysts said the decline reflected ample
domestic supplies that have pressured farmgate prices.
    However, underscoring burdensome old-crop supplies, the USDA
also reported U.S. Dec. 1 wheat stocks at 2.073 billion bushels,
up from 1.75 billion a year earlier and the highest Dec. 1
figure since 1987.
    Corn is under pressure after USDA's reports confirmed hefty
U.S. supplies after a record harvest topping 15 billion bushels.
    Long queues of trucks loaded with soybeans have been forming
in front of elevators in the heart of Brazil's grain belt this
week, a sure sign the harvest is speeding up and will soon pour
an expected record volume of the oilseed into the market.
 
    
 Grains prices at 0314 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  425.75   -0.50   -0.12%   +1.67%       411.09   65
 CBOT corn   357.25   -1.00   -0.28%   +0.00%       355.04   57
 CBOT soy    1037.75  -2.50   -0.24%   +2.60%       1025.90  65
 CBOT rice   9.91     -$0.07  -0.70%   +3.12%       $9.79    74
 WTI crude   53.09    $0.08   +0.15%   +1.61%       $52.33   53
 Currencies                                                  
 Euro/dlr    $1.061   $0.000  -0.02%   +0.26%                
 USD/AUD     0.7483   0.000   +0.01%   +0.58%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

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