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GRAINS-Wheat falls 1 pct on profit taking after Fed action
September 17, 2012 / 12:46 AM / 5 years ago

GRAINS-Wheat falls 1 pct on profit taking after Fed action

SYDNEY, Sept 17 (Reuters) - U.S. wheat fell more than one
percent in early trade on Monday as traders locked in profits
after strong gains in commodities late last week driven by hopes
of stronger global demand after the Federal Reserve backed a new
round of stimulus. 
          
    FUNDAMENTALS 
    * Chicago Board Of Trade December wheat fell 1.03
percent to $9.14-3/4 a bushel, having hit a five-week high on
Friday and closing up 2.47 percent. 
    * November soybeans slipped 0.6 percent to $17.28-1/2
a bushel, having firmed 0.47 percent in the previous session. 
    * December corn fell 0.9 percent to $7.75 a bushel
after closing up 1.07 percent on Friday. 
    * Risk assets were boosted after the Fed on Thursday said it
was launching a third round of bond buying to pump $40 billion
into the economy each month until the U.S. jobs market shows a
sustained improvement.
    * The U.S. Department of Agriculture, in a closely watched
supply-demand report on Wednesday, estimated this year's U.S.
soybean harvest at 2.634 billion bushels, down from last month's
estimate of 2.692 billion and below analysts' average estimate
of 2.657 billion. 
    * Traders are keeping an eye on demand for soybeans, even as
new supplies come in, amid concerns that more rationing of
global demand may be needed due to poor crops in the United
States and South America.
    * Egypt bought 235,000 tonnes of Russian, French and
Ukrainian wheat on Thursday in its seventh international tender
in a month and second for the week. 
    * The world's top wheat importer, Egypt has been making
purchases amid concerns in the market that supplies are
dwindling in the Black Sea region due to drought. Some traders
suspect Russia may curb exports, although the government has
said it will not.
          
    MARKET NEWS  
    * The dollar languished near a seven-month trough versus a
basket of major currencies in Asia on Monday, but recovered some
ground against a broadly weaker yen, which faces a central bank
that could ease monetary policy this week.  
   * Oil prices rose on Friday but settled below four-month
highs hit in the session as concerns that high energy costs
could threaten economic growth tempered hopes for stronger
demand after the Federal Reserve launched its latest economic
stimulus program.  
   * U.S. stocks rose for a fourth straight session on Friday to
close out the week at nearly five-year highs after the Federal
Reserve took bold action to spur the economy, a move that could
keep equities buoyed in the coming months.  
    
    DATA/EVENTS (GMT) 
0800 Euro zone current account for         July 
0900 Euro zone Eurostat trade for          July     
0900 Euro zone labour costs for            Q2 
1230 New York  Fed Empire State Survey for September 
    
  Grains prices at  0024 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     914.75    -9.50  -1.03%    +0.19%     874.90   68
  CBOT corn      775.00    -7.00  -0.90%    -5.92%     767.74   36
  CBOT soy      1728.50   -10.50  -0.60%    +5.96%    1588.16   50
  CBOT rice      $15.34    $0.06  +0.43%    -3.64%     $15.48   65
  WTI crude      $98.98   -$0.02  -0.02%    +6.02%     $89.28   77
  Currencies                                                
  Euro/dlr       $1.311   $0.082  +6.66%    +6.67%
  USD/AUD         1.052   -0.003  -0.29%    -0.46%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Ed Davies)

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