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GRAINS-Wheat jumps 1.5 pct as hot, dry weather threatens production
July 11, 2017 / 12:48 AM / 2 months ago

GRAINS-Wheat jumps 1.5 pct as hot, dry weather threatens production

    SYDNEY, July 11 (Reuters) - U.S. wheat rose 1.5 percent on
Tuesday as forecasts for hot, dry weather across large growing
regions stoked fears of widespread production losses, pushing
prices towards a two-year high.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board Of
Trade rose 1.5 percent to $5.58 a bushel, having closed up
2.8 percent on Tuesday. 
    * The most active soybean futures were up 0.6 percent
to $10.45-1/4 a bushel, near the session high of $10.47 a bushel
- the highest since March 6. Soybeans firmed 2.3 percent on
Monday.
    * The most active corn futures rose 0.4 percent to
$4.16-1/2 a bushel, near the session high of $4.17-1/4 a bushel
- the highest since June 2016. Corn closed up 2.5 percent on
Monday.    
    * Wheat firms as hot, dry weather expected across key
growing regions, fuelling more concerns about the state of the
crops.
    * The USDA rated 35 percent of U.S. spring wheat crop at
good to excellent, matching analyst expectations.

    * The USDA rated 65 percent of the U.S. corn crop in good to
excellent condition, down from 68 percent the previous week.
Analysts surveyed by Reuters had expected a drop of 1 percentage
point. 
         
    MARKET NEWS  
    * The dollar rose against the yen on Monday as the Bank of
Japan's offer last week to buy an unlimited amount of bonds drew
investors' focus to the divergent monetary policy outlook
between the U.S. Federal Reserve and the Bank of Japan.  
    * Oil prices rose modestly on Monday, but increased drilling
activity in the United States and uncertainty over Libyan and
Nigerian production cuts clouded the future supply outlook.
  
    * U.S. stocks edged higher on Monday, led by gains in
technology stocks as investors were optimistic ahead of
earnings.  
    
    DATA AHEAD (GMT)   
1000    U.S.  Small business confidence index     Jun  
1255    U.S.  Job openings (JOLTS)                May 
1400    U.S.  Wholesale inventories               May 
        
 Grains prices at  0024 GMT
 Contract        Last   Change   Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat    558.00     8.00    +1.45%       +4.30%  483.64    71
 CBOT corn     416.50     1.75    +0.42%       +2.90%  397.30    81
 CBOT soy     1045.25     6.00    +0.58%       +2.93%  948.98    93
 CBOT rice      12.03    $0.00    +0.00%       +0.84%  $11.63    73
 WTI crude      44.54    $0.14    +0.32%       +0.70%  $45.44    46
 Currencies                                                        
 Euro/dlr      $1.139  -$0.001    -0.06%       -0.07%              
 USD/AUD       0.7605    0.000    +0.00%       +0.00%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Richard Pullin)
  

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