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GRAINS-U.S. wheat futures edge up after steep fall on supply forecast
April 5, 2012 / 1:11 AM / 5 years ago

GRAINS-U.S. wheat futures edge up after steep fall on supply forecast

SYDNEY, April 5 (Reuters) - U.S. wheat futures rose 0.4
percent in early Asian trading on Thursday after falling 2.9
percent on Wednesday on forecasts of good crop growing weather
and a firmer dollar.	
    CBOT soybean futures climbed higher on supply concerns,
while corn futures were flat.	
                 	
 FUNDAMENTALS  	
    * Forecasts for good crop weather after large rainfall
across much of the U.S. Plains hard red winter wheat region this
week give a further boost to a crop that already has entered the
growing season with high ratings.	
    * Informa estimated the 2012/13 U.S. winter wheat crop at 	
1.631 billion bushels, up from 1.494 billion a year earlier, 	
adding further pressure to the wheat market. 	
    * Firmer dollar weighs on commodities demand.	
    * Soybean supply predicted to be tight after estimates of
lower plantings in the U.S. which follows poor supplies from
South America after a drought in January.	
    * Informa lowered its forecast of Brazil's soybean crop to
66.5 million tonnes, from its previous estimate of 68 million.
The firm cut its Argentine soy crop forecast to 45 million
tonnes, from 47.5 million previously. 	
    * Drier weather in the next couple of weeks should boost
early plantings of the 2012 U.S. corn crop, adding further
pressure to new-crop corn amid expectations for the largest
seedings in 75 years. 	
    	
    MARKET NEWS  	
    * The euro fell to a three-week low against the U.S. dollar
after European Central Bank president Mario Draghi said the euro
zone economic outlook is subject to downside risks, leaving the
door open for more policy action. 	
    * Oil fell for a second straight day, ending about 2 percent
lower after testing key technical support levels as U.S.
government data showed crude stockpiles in the world's top
consumer jumped last week to a nine-month high.  	
    * U.S. stocks fell for a second day as investors
contemplated a world without monetary stimulus and a poorly
received bond auction in Spain suggested the effects of Europe's
funding operations were waning.  	
    	
    DATA/EVENTS	
 0330  China     HSBC services PMI      Mar         	
 1000  Germany   Industrial output mm   Feb 2012    	
 1100  Britain   BOE Bank Rate          Apr 2012    	
 1230  U.S.      Jobless claims         Weekly      	
 1430  U.S.      EIA natural gas stocks Weekly      
 	
        	
 Grains prices at  0035 GMT
 Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
 CBOT wheat     641.75     2.50  +0.39%    -2.47%     651.13   47
 CBOT corn      657.00     0.25  +0.04%    -0.19%     649.18   59
 CBOT soy      1422.75     3.25  +0.23%    +0.42%    1354.89   75
 CBOT rice      $14.91    $0.00  +0.00%    +0.13%     $14.48   59
 WTI crude     $102.01    $0.54  +0.53%    -1.92%    $106.06   35
 Currencies                                                
 Euro/dlr       $1.315   $0.001  +0.06%    -0.67%
 USD/AUD         1.027    0.001  +0.09%    -0.55%
 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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