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GRAINS-Soybeans drop for 2nd day to near 4-year low on bumper output
October 1, 2014 / 1:12 AM / 3 years ago

GRAINS-Soybeans drop for 2nd day to near 4-year low on bumper output

SYDNEY, Oct 1 (Reuters) - U.S. soybean futures fell for a
second consecutive session on Wednesday, as bumper production
dragged on prices, despite the U.S. Department of Agriculture
pegging supplies at the beginning of last month below market
expectations. 
         
    FUNDAMENTALS  
    * Chicago Board Of Trade front-month soybeans fell 0.4
percent to $9.09-1/4 a bushel, having slid 1.1 percent on
Tuesday.
    Soybean prices hit a four-year low of $9.05-1/2 a bushel
earlier in the week.
    * Spot corn fell 0.5 percent to $3.19-1/4 a bushel,
just above the session low of $3.18-1/4 a bushel, the lowest
since 2009. Corn slumped 1.5 percent in the previous session.
    * Spot wheat fell 0.7 percent to $4.74-1/2 a bushel,
having closed down 0.7 percent on Tuesday. 
    * USDA said soybean stocks as of Sept. 1 were a razor-thin
92 million bushels, versus the trade guess of 126 million.
Indicated usage during June-August was 313 million bushels, up 6
percent on the year. 
    * Still, the United States has just started to harvest a
bin-busting 2014 soybean crop of almost 4 billion bushels,
dampening the impact of Tuesday's bullish figure.
    * USDA said this year's wheat crop totaled 2.035 billion
bushels, up 5 million bushels from its previous estimate and
just below the analysts' average guess.
         
    MARKET NEWS  
    *  The euro languished near a fresh two-year trough early on
Wednesday, having come under fire as a further slowdown in euro
zone inflation intensified pressure for more stimulus from the
European Central Bank.  
    * World oil prices tumbled to their lowest in more than two
years on Tuesday, with U.S. crude posting its biggest daily
decline since 2012, as a drop in gasoline prices and
end-of-quarter selling capped three months of steep losses.
  
    * U.S. stocks slipped on Tuesday, dragged down by energy and
materials shares as economic data disappointed.  
    
    DATA AHEAD (GMT)
     0100  China        Official manufacturing PMI           Sep
     0750  France       Markit manufacturing PMI             Sep
     0755  Germany      Markit/BME manufacturing PMI         Sep
     0800  Euro zone    Markit manufacturing PMI Final       Sep
     1215  U.S.         ADP national employment              Sep
     1345  U.S.         Markit manufacturing PMI Final       Sep
     1400  U.S.         ISM Manufacturing PMI                Sep
        
  Grains prices at  0044 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     474.50    -3.25  -0.68%    -1.40%     516.64   32
  CBOT corn      319.25    -1.50  -0.47%    -2.07%     362.35   28
  CBOT soy       909.25    -4.00  -0.44%    -1.54%     985.41   22
  CBOT rice      $12.77    $0.02  +0.20%    +0.27%     $12.67   58
  WTI crude      $91.43    $0.27  +0.30%    -3.32%     $93.35   41
  Currencies                                                
  Euro/dlr       $1.262  -$0.001  -0.06%    -0.48%
  USD/AUD         0.873   -0.001  -0.14%    +0.23%
  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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