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GRAINS-Wheat firms as USDA reports worse than expected crop damage
November 14, 2012 / 12:37 AM / 5 years ago

GRAINS-Wheat firms as USDA reports worse than expected crop damage

By Colin Packham
    SYDNEY, Nov 14 (Reuters) - U.S. wheat rose on Thursday,
snapping a three-day slump, as the U.S. Department of
Agriculture said crop conditions had deteriorated more than
expected following dry weather across key growing areas.
         
    FUNDAMENTALS  
    * December wheat climbed 0.35 percent to $8.54 a
bushel, after closing down 0.79 percent the session before. 
    * Chicago Board of Trade January soybeans gained 0.46
percent to $14.14-1/2 a bushel, having firmed 0.21 percent on
Wednesday.  
    * December corn was 0.45 percent higher at $7.26-3/4 a
bushel. It advanced 0.77 percent in the previous session.
    * Crop ratings for the developing U.S. wheat crop fell 3
percentage points, more than expected, to a new November low due
to dry conditions in critical growing areas of the U.S. Plains,
the USDA said on Tuesday.
    * It said the crop was rated 36 percent good to excellent as
of Nov. 9, down from 39 percent a week earlier. A year ago, the
crop was rated 50 percent good to excellent. 
    * The average of estimates in a Reuters poll of 10 analysts
predicted good-to-excellent ratings for U.S. wheat to fall to 38
percent. The previous low for this time of year was 46 percent,
hit in the 1991/92 and 2001/02 crop years.
    * Dry weather is expected to continue in the western portion
of the U.S. Plains hard red winter wheat region for the next 15
days. Some eastern areas will receive showers, which will
benefit the crop as it heads toward dormancy.
    * Commodity funds bought an estimated 6,000 soybean and
5,000 corn contracts at the CBOT, traders said. They sold an
estimated 3,000 contracts of wheat, which ended lower.
 
    * USDA export inspections of soybeans for the week that
ended on Thursday reached 64.1 million bushels, topping trade
expectations for 53 million to 59 million bushels.
    * Weekly corn export inspections of 9.5 million bushels were
below expectations for 13 million to 17 million, and wheat
export inspections of 10.5 million missed expectations for 12
million to 14 million.
            
    MARKET NEWS  
    * The euro hit a more than two-month low against the dollar
and a one-month trough versus the yen on Tuesday, weighed down
by delays in aid for debt-burdened Greece and persistent
uncertainty about whether Spain will seek a bailout.  
    * Brent crude oil fell for a second day on Tuesday over
concerns about lower demand in a well-supplied market.  
    * U.S. stocks sold off late in the session on Tuesday, led
by a slide in Microsoft shares, though retailers were a notable
bright spot after Home Depot raised its outlook.  
    
    DATA/EVENTS (GMT) 
1000 Euro zone Industrial production      Sep 
1330 U.S.      Retail sales               Oct 
1330 U.S.      Producer price index       Oct 
1500 U.S.      Business inventories       Sep 
1900           Federal Open Market Committee minutes of Oct.    
                                                                
              23-24 meeting 
    
    
  Grains prices at  0012 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     854.00     3.00  +0.35%    -0.44%     867.54   37
  CBOT corn      726.75     3.25  +0.45%    +1.22%     744.68   40
  CBOT soy      1414.50     6.50  +0.46%    +0.68%    1519.80   25
  CBOT rice      $14.79    $0.01  +0.03%    -0.80%     $15.23   33
  WTI crude      $85.29   -$0.09  -0.11%    -0.33%     $88.19   45
  Currencies                                                
  Euro/dlr       $1.271   $0.001  +0.09%    +0.05%
  USD/AUD         1.045    0.002  +0.19%    +0.23%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Editing by Joseph Radford)

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