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GRAINS-Wheat eases after 4-day rally; soybeans struggle with ample LatAm supplies
February 13, 2017 / 3:39 AM / 7 months ago

GRAINS-Wheat eases after 4-day rally; soybeans struggle with ample LatAm supplies

    * Wheat eases from 7-month top as ample world supplies weigh
    * Soybeans weighed down by record Brazilian production

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Feb 13 (Reuters) - Chicago wheat lost ground on
Monday, snapping four sessions of gains and falling from its
highest in seven months as ample world supplies weighed on the
market. 
    Soybeans slid as all-time high Brazilian production anchored
the market which had found support last week in strong Chinese
demand, while corn edged lower after closing higher on Friday.
    The Chicago Board of Trade most-active wheat contract
dropped 0.5 percent to $4.46-3/4 a bushel by 0326 GMT. The
market closed up 1.2 percent on Friday, after hitting its
strongest since July 13 at $4.50-3/4.
    Corn eased 0.1 percent to $3.74 a bushel and soybeans
 fell 0.4 percent to $10.55-1/4 a bushel.
    Wheat has been drawing support from a cut in the U.S.
Department of Agriculture's supply forecasts for the 2016/17
season.
    The government reduced its corn supply outlook due to
increased use in ethanol production and held its U.S. soybean
forecast steady.
    The USDA cut its estimate of world wheat ending stocks for
2016-17, largely due to reduced harvest estimates for India and
Kazakhstan, although global inventories would still be at a
record.
    "There is a break in the upside trend which we saw in wheat
after the USDA report and improving demand for U.S. wheat," said
Kaname Gokon at brokerage Okato Shoji in Tokyo.
    "If you look at it, there are plenty of supplies around in
most exporting countries which will limit the upside potential."
    The soybean market was supported by strong Chinese demand, 
but record Brazilian supplies hitting the market are likely to
weigh on prices.
    China, the world's top soy buyer, imported 7.66 million
tonnes of soybeans in January, the highest for the month since
at least 2010, customs data showed on Friday, as delayed
shipments arrived during the month and crushing demand remained
strong.
    In news, severe winter weather has slowed rail deliveries of
crops to shippers in the U.S. Pacific Northwest, sending freight
rates soaring and prompting Asian buyers to seek fill-in loads
as they wait for the backlog at ports to clear.
    Blizzards, avalanches and heavy rain in recent weeks have
hit transport of corn, soy and wheat to ports where they head
for the lucrative Asian market, adding to the struggles that
have plagued U.S. exporters since harvest.

 Grains prices at  0326 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  446.75   -2.25    -0.50%   +0.73%       427.13   69
 CBOT corn   374.00   -0.50    -0.13%   +1.22%       363.68   69
 CBOT soy    1055.25  -3.75    -0.35%   +0.45%       1038.04  60
 CBOT rice   9.48     -$0.08   -0.89%   +0.05%       $9.69    42
 WTI crude   53.84    -$0.02   -0.04%   +1.58%       $52.85   59
 Currencies                                                   
 Euro/dlr    $1.062   -$0.002  -0.22%   -0.37%                
 USD/AUD     0.7667   0.000    -0.03%   +0.59%                
 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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