November 14, 2012 / 12:27 PM / 5 years ago

GRAINS-Soybeans jump on export demand, strong crushing

* Soy rises for second day
    * USDA reports China bought U.S. soybeans
    * Wheat declines despite concerns about U.S. crop

 (Recasts with U.S. trading session, adds analyst comments, pvs
HAMBURG/SINGAPORE)
    By Tom Polansek
    CHICAGO, Nov 14 (Reuters) - U.S. soybean futures jumped on Wednesday for a
second consecutive day on export business and stronger-than-expected crushing
demand.
    The rebound came after technical selling and concerns about tight supplies
easing drove prices to a 4 -1/2 month low on Monday, but the decline created new
demand.
    The U.S. Department of Agriculture on Wednesday said that private exporters
struck deals to sell 120,000 tonnes of U.S. soybeans to China, the world's top
importer of the oilseed. Exporters also sold 40,000 tonnes of U.S. soybean oil
to unknown destinations, according to the USDA. 
    Separately, the U.S. National Oilseed Processors Association, or NOPA, said
153.536 million bushels of soybeans were crushed in October, more than the
147.713 million that analysts had expected.
    The "much-better-than-expected" crush generated a "positive response" in the
market, said Rich Feltes, vice president of research for RJ O'Brien.
    Most active January soybeans rose 1 percent to $14.21-1/2 a bushel at
the Chicago Board of Trade by 9:45 a.m. CST. December corn slipped 0.2
percent to $7.21-1/2, and December wheat dipped 0.2 percent to $8.49-1-4 a
bushel. 
    Wheat prices weakened despite concerns about dryness hurting the U.S. winter
wheat crop.
    The USDA, in a report issued on Tuesday, 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. 
    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, said Don Keeney,
meteorologist for MDA EarthSat Weather. Friday's USDA supply and demand report
caused weakness in soy and grains prices. 
    "I think the U.S. wheat crop condition is deteriorating which is quite
bullish for the market," said Ker Chung Yang, analyst at Phillip Futures in
Singapore.
    U.S. wheat has become more competitive in the world market as supplies from
the Black Sea region have tightened and Australia is set to produce a smaller
crop.
    However, a Libyan state grain buying agency in Benghazi purchased 30,000
tonnes of optional-origin milling wheat in a tender that closed on Nov. 6,
European traders said on Wednesday. Traders said they suspected it would be
sourced in Russia. 
 Prices at 9:39 a.m. CST (1539 GMT)                           
 
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  721.00    -2.50  -0.4%   11.5%
 CBOT soy                  1436.75     9.75   0.7%   19.9%
 CBOT meal                  436.30     3.20   0.7%   41.0%
 CBOT soyoil                 47.46     0.44   0.9%   -8.9%
 CBOT wheat                 847.25    -4.25  -0.4%   29.8%
 CBOT rice                     .00     0.00   0.0% -100.0%
 EU wheat                      .00     0.00   0.0% -100.0%
 
 US crude                    85.76     0.38   0.5%  -13.2%
 Dow Jones                  12,702      -55  -0.4%    4.0%
 Gold                      1723.66    -1.23  -0.1%   10.2%
 Euro/dollar                1.2728   0.0026   0.2%   -1.7%
 Dollar Index              81.1140   0.0300   0.0%    1.2%
 Baltic Freight               1011       26   2.6%  -41.8%
    * All grain and oilseed prices for second position. Paris futures prices in
Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.

 (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in
Singapore; Editing by Alison Birrane and Grant McCool)

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