* Wheat up 3 pct this week, short covering driving prices
* Abundant world supplies keeping lid on wheat market
* Soybeans face 2nd week of decline on S.American supplies
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Feb 3 Chicago wheat was poised on
Friday for a weekly gain as short-covering drove prices higher,
although plentiful global supplies kept a lid on the market.
Soybeans faced a second week of decline, weighed down by
record Brazilian production and improved crop weather in
The most-active wheat contract on the Chicago Board of Trade
has gained more than 3 percent this week, rising for five
out of six weeks. The market on Thursday hit its highest since
Aug. 22 at $4.37-3/4 a bushel.
Soybeans are down 1.3 percent in their second straight
weekly loss and corn is up 1.3 percent, recouping some of
last week's decline.
"Short-covering is the key feature in the wheat market and
we saw some technical buying as well," said Kaname Gokon at
brokerage Okato Shoji in Tokyo.
Commodity funds were net buyers of CBOT wheat futures
contracts on Thursday, traders said. They were net sellers of
soybeans and even in corn.
Additional support for wheat stemmed from strong demand.
The U.S. Department of Agriculture said weekly old-crop
export sales of wheat totalled 451,200 tonnes in its latest
Analyst forecasts for weekly old-crop export sales wheat
ranged from 250,000 to 450,000 tonnes. New-crop wheat export
sales were 59,000 tonnes, in line with market expectations.
But the gains in wheat were capped by plentiful global
supplies as well as expectations that winter weather in the
northern hemisphere will do little damage to the dormant crop.
Soybean prices have been pressured as crop weather improves
in Argentina, while harvesting in Brazil is on track for a
record crop of more than 100 million tonnes.
CBOT soybeans March contract may retrace to a support
at $10.24-3/4, as it failed to break a resistance at $10.44-1/2
per bushel, according to Wang Tao, Reuters analyst for
commodities and energy technicals.
Grains prices at 0351 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 433.25 -1.25 -0.29% +2.97% 418.88 61
CBOT corn 367.00 -0.50 -0.14% +2.02% 358.90 60
CBOT soy 1036.50 -0.75 -0.07% +1.17% 1029.98 46
CBOT rice 9.59 $0.05 +0.58% +0.58% $9.70 43
WTI crude 53.83 $0.29 +0.54% -0.09% $52.91 60
Euro/dlr $1.075 $0.006 +0.55% +0.53%
USD/AUD 0.7642 0.009 +1.19% +1.27%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Sunil Nair)