March 7, 2014 / 2:07 AM / 4 years ago

GRAINS-Corn flat, set for biggest weekly gain in 10 months

SYDNEY, March 7 (Reuters) - U.S. corn futures held steady on
Friday, but the grain was poised to record its biggest weekly
rise in 10 months on  potential disruptions to supplies from
Ukraine and strong demand for U.S. stocks.
         
    FUNDAMENTALS  
    * Chicago Board Of Trade spot corn up more than 6
percent for the week, the biggest rally since May 3, 2013.
    * Front-month wheat up more than 7 percent for the
week, the biggest weekly gain since July 20, 2012.
    * March soybeans up more than 1.5 percent for the
week, the fifth straight weekly gain.
    * Corn and wheat drew background support from concern about
political instability and violence in Ukraine, a major exporter
of both crops. The unrest has caused some traders in that
country to hold back from agreeing to new contracts, while
Russian corn export prices have been rising for two weeks.
 
    * U.S. Department of Agriculture reported U.S. old-crop corn
export sales of more than 1.5 million tonnes in the latest week,
well above a range of trade estimates.
    * Brazil exported 2.79 million tonnes of soybeans in
February, up sharply from 30,600 tonnes in January, Trade
Ministry data released on Thursday showed. 
    * Traders expect USDA on Monday to trim its forecasts of soy
and corn production in South America due to poor crop weather.
 
    * A report issued by an attache of the U.S. Department of
Agriculture estimated China's 2013/14 soybean imports at 68
million tonnes, below the USDA's last official forecast of 69
million. 
         
    MARKET NEWS  
    * The euro hovered near a two-month high against the dollar
early on Friday following a relief rally when the European
Central Bank left its interest rates unchanged.  
    * U.S. oil rose on Thursday after falling to near three-week
lows as traders reconsidered the geopolitical risk posed by
worsening diplomatic relations over Russia's intervention in
Crimea.  
    * U.S. stocks mostly rose on Thursday, with the S&P 500
closing at yet another record on better-than-expected jobless
claims data and the European Central Bank's move to keep rates
unchanged.  
    
    DATA (GMT)
1100  Germany   Industrial output             
1330  U.S.      Unemployment rate             
1330  U.S.      Nonfarm payrolls              
1330  U.S.      International trade           
        
  Grains prices at  0138 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     645.75    -0.25  -0.04%    +0.51%     596.33   70
  CBOT corn      491.25     0.25  +0.05%    +1.92%     455.61   82
  CBOT soy      1436.50    -1.50  -0.10%    +1.13%    1341.14   79
  CBOT rice      $15.30    $0.02  +0.10%    +0.39%     $15.74   39
  WTI crude     $101.76    $0.20  +0.20%    +0.31%    $100.29   49
  Currencies                                                
  Euro/dlr       $1.386   $0.000  +0.00%    +0.92%
  USD/AUD         0.908   -0.001  -0.07%    +1.05%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Colin Packham)

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