August 12, 2015 / 1:20 AM / 2 years ago

GRAINS-Soybeans edge higher ahead of USDA report

SYDNEY, Aug 12 (Reuters) - U.S. soybeans rose on Wednesday,
rebounding from losses of more than 2 percent in the previous
session, as a stronger dollar underpinned gains, with focus
turning to U.S. Department of Agriculture forecasts due later in
the session. 
         
    FUNDAMENTALS  
    * Chicago Board of Trade November soybeans rose 0.33
percent to $9.74-3/4 a bushel, having closed down 2.3 percent on
Tuesday.
    * December corn climbed 0.39 percent to $3.89 a
bushel, after ending the previous session down 3.4 percent.
    * September wheat gained 0.2 percent to $5.08-1/4 a
bushel, having closed down 3.5 percent on Tuesday. 
    * The USDA will report its latest crop production estimates
on Wednesday, which are expected to show lower 2014/15 and
2015/16 ending stocks forecasts for both corn and soybeans.
 
    * Corn declined after the USDA rated 70 percent of the U.S.
crop in good to excellent condition in a weekly report late
Monday, unchanged from the previous week, bucking trade
expectations for a slight decline. 
    * U.S. soybean ratings were also steady, with 63 percent
rated good to excellent.  
    * Grain prices were also curbed by a drop in crude oil and
metals after China devalued the yuan to boost its faltering
economy. The move raised concerns that a persistently weaker
currency would choke off demand in the world's top commodities
consumer. 
         
    MARKET NEWS  
    * The dollar began Wednesday's trading not far from a
two-month peak against the yen scaled after the Chinese central
bank surprised markets by devaluing its yuan by almost 2
percent.  
    * U.S. oil prices edged up from six-year lows on Wednesday
after China's currency devaluation underscored fears over its
economic health and OPEC production hit multi-year highs. 
    * U.S. stocks declined broadly on Tuesday.  
    
    DATA AHEAD (GMT) 
0600  Germany            Wholesale price index          Jul 
0900  Germany            ZEW economic sentiment         Aug 
1000  U.S.               NFIB business optimism         Jul 
1230  U.S.               Labor costs                    Q2 
1400  U.S.               Wholesale inventories          Jun 
        
  Grains prices at  0052 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     508.25     1.00  +0.20%    -3.28%     536.23   45
  CBOT corn      389.00     1.50  +0.39%    -2.99%     410.48   47
  CBOT soy       974.75     3.25  +0.33%    -1.99%     983.63   56
  CBOT rice      $11.79    $0.00  +0.00%    -0.59%     $11.17   74
  WTI crude      $43.51    $0.43  +1.00%    -3.23%     $49.22   29
  Currencies                                                
  Euro/dlr       $1.105   $0.000  +0.05%    +0.26%
  USD/AUD         0.731    0.001  +0.16%    -1.30%
  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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