* Wheat up 3 pct this week as USDA cuts supply outlook
* Soybeans eye 1st weekly gain in three on China demand
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Feb 10 Chicago wheat futures on
Friday were poised to post a second week of gains with the grain
trading at its highest in seven months on a U.S. forecast for
lower global supplies.
Corn is also up for a second week in a row, while soybeans
are set to end this week on a positive note, supported by strong
Chinese demand, after declining for the last two weeks.
The U.S. Department of Agriculture cut its estimate of world
wheat ending stocks for 2016/17 to 248.61 million tonnes from
253.29 million tonnes. The agency cited reduction to harvest
expectations in India and Kazakhstan as the reason for the drop.
The most-active wheat contract on the Chicago Board of Trade
is up more than 3 percent this week, set for a second
straight weekly gain and the biggest in five.
The front-month wheat contract climbed to $4.44 a
bushel, matching Thursday's seven-month high.
Soybeans are up 2.4 percent this week in what would
mark their first such gain in three. Corn is up more than
1 percent for the week.
"The USDA cut their global wheat inventory forecast almost 2
percent to universal surprise," said Tobin Gorey, director of
agricultural strategy, Commonwealth Bank of Australia.
"Lower inventories are obviously a plus for prices. Yet we
are somewhat sceptical that the news is worth an extra
two-and-half to 3 percent on wheat prices."
For the United States, the agriculture department raised its
wheat export forecast for the 2016/17 season by 50 million
bushels, citing a strong pace of export shipments. That resulted
in a reduction in ending stocks for the year to 1.139 billion
bushels, compared to analyst expectations for 1.186 billion.
Soybeans have been supported in recent sessions by strong
China, the world's largest soybean buyer, imported 7.66
million tonnes of the oilseed in January, highest for the first
month since at least 2010. Purchases were down 14.9 percent from
nine million tonnes in December.
The USDA also cut its estimate for Argentine soybean
production to 55.5 million tonnes, down from 57.0 million in
January. But that was above the Rosario grain exchange estimate
of 54.5 million tonnes on Wednesday.
The U.S. agency kept its estimate for Brazil's 2016/17 soy
output unchanged at 104 million tonnes, compared to a forecast
out of Brazil earlier on Thursday for a record of 105.6 million.
The USDA also slashed its estimate for U.S. corn ending
Grains prices at 0353 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 443.25 -0.25 -0.06% +2.90% 424.14 68
CBOT corn 369.00 -0.50 -0.14% +0.14% 361.98 59
CBOT soy 1051.00 0.50 +0.05% +0.79% 1035.23 59
CBOT rice 9.49 $0.01 +0.11% +0.64% $9.69 42
WTI crude 53.08 $0.08 +0.15% +1.41% $52.82 51
Euro/dlr $1.066 -$0.012 -1.11% -0.90%
USD/AUD 0.7647 -0.004 -0.47% -0.10%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Tom Hogue)