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GRAINS-Soybeans face biggest weekly drop since late March on supply pressure
May 12, 2017 / 3:13 AM / 4 months ago

GRAINS-Soybeans face biggest weekly drop since late March on supply pressure

    * Soybeans down almost 1 pct this week
    * Wheat down 1.8 pct after two weeks of losses, corn down
0.5 pct

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 12 (Reuters) - Chicago soybean futures were
on track on Friday for their biggest weekly decline since late
March with bumper global supplies weighing on the market. 
    Wheat was down about 2 percent, after two weeks of gains,
although declining production in the United States provided a
floor to the market. 
    "There is pressure from South American harvest, Brazilian
soybean products are flooding the market," said Kaname Gokon
from Tokyo brokerage Okato Shoji. "Prices will remain weak, the
July contract may fall below $9.60 a bushel."
    The contract was trading down 0.2 percent at $9.64 a
bushel by 0254 GMT. 
    The most-active soybean contract on the Chicago Board Of
Trade is down nearly 1 percent this week, the biggest
seven-day fall in six weeks.
     Wheat has lost almost 2 percent, the first weekly
slide in three weeks, and corn has lost about half a
percent after two weeks of gains.
    The U.S. Department of Agriculture pegged world soybean
ending stocks for both the 2016-17 and 2017-18 marketing years
above trade expectations on Wednesday.
    U.S. soybean ending stocks were seen rising to an 11-year
high in the 2017/18 crop year following another bumper harvest,
the agency said.
    Brazilian statistics agency Conab raised its estimate of the
country's 2016-17 crop to 113 million tonnes, from 110.2 million
last month.
    The Buenos Aires Grains Exchange raised its estimate of
Argentina's crop to 57.5 million tonnes, from 56.5 million
previously.
    For wheat, the USDA pegged the 2017/18 harvest at 1.820
billion bushels, down from 2.310 billion bushels a year earlier.
That would mark the smallest U.S. wheat harvest since the
2006/07 marketing year, when farmers produced 1.808 billion
bushels. 
    CBOT corn futures were down as forecasts for warmer weather
next week in the heart of the Midwest eased concerns about cold
and wet conditions that have slowed planting and germination.
    There was additional pressure on corn stemming from
disappointing U.S. export data. The USDA reported export sales
of U.S. corn in the last week at 222,600 tonnes (old and new
marketing years combined), the lowest for a single week since
June 2014.
    Commodity funds were net sellers of CBOT corn and soybean
futures on Thursday and net buyers of wheat, traders said.

    
 Grains prices at  0254 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  434.00  0.25    +0.06%   +0.52%       438.37  53
 CBOT corn   368.75  -0.50   -0.14%   -1.34%       369.93  49
 CBOT soy    964.00  -2.25   -0.23%   -0.64%       961.54  48
 CBOT rice   10.73   $0.09   +0.85%   +4.33%       $10.13  82
 WTI crude   47.86   $0.03   +0.06%   +1.12%       $49.77  52
 Currencies                                                
 Euro/dlr    $1.087  $0.001  +0.10%   +0.06%               
 USD/AUD     0.7381  0.001   +0.07%   +0.24%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Amrutha Gayathri)
  

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