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GRAINS-Wheat eases for third day on supply pressure, soybeans extend gains
February 27, 2017 / 4:11 AM / 7 months ago

GRAINS-Wheat eases for third day on supply pressure, soybeans extend gains

    * Wheat loses more ground, ample world supplies weigh
    * Soybeans up for 2nd day on slow selling by Brazil farmers

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Feb 27 (Reuters) - Chicago wheat futures slid for
a third consecutive session on Monday to hit a near one-week
low, with lack of demand for U.S. shipments amid abundant global
supplies weighing on the market.
    Soybeans rose for a second session, underpinned by slow
selling by Brazilin farmers while corn edged higher, snapping
two sessions of gains.
    The Chicago Board of Trade most-active wheat contract
lost 0.3 percent to $4.46-3/4 a bushel by 0345 GMT, after
earlier touching its lowest since Feb. 21 at $4.45-1/2 a bushel.
Wheat closed down 1.2 percent on Friday. 
    Soybeans rose 0.3 percent to $10.27-3/4 a bushel,
having firmed 1.3 percent on Friday. Corn added 0.2
percent to $3.64-3/4, after closing down 0.4 percent in the
previous session.
    Wheat is under pressure from rising global supply which is
increasing competition for U.S. wheat.
    Argentina will likely harvest a record 18.3 million tonnes
of wheat from the 2016/17 crop, 11 million to 11.5 million
tonnes of which could be exported, Agriculture Minister Ricardo
Buryaile said.
    The U.S. government projected a 7 percent decline in corn
production in the 2017/18 marketing year to 14.065 billion
bushels, but ending stocks were expected to remain burdensome at
more than 2 billion bushels.
    The soybean market is finding support as farmers in Brazil
have slowed sales of their record-large crop after prices
dropped to their lowest since Jan. 12 last week.
    "Market chatter has been focused on the fact that Brazilian
farmers have been more patient soybean sellers this season,"
said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia.
    "Wet weather has also slowed loading at ports."
    Funds appeared to be trimming big net long, or bought,
positions built up in recent weeks. 
    Weekly data from the U.S. Commodity Futures Trading
Commission showed non-commercial traders in the week to Feb. 14
built their biggest net long since July in corn, and the
second-biggest since July in soybeans.
    
 Grains prices at  0345 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  446.75   -1.25   -0.28%   -1.49%       449.17   38
 CBOT corn   364.75   0.75    +0.21%   -0.21%       367.35   39
 CBOT soy    1027.75  3.50    +0.34%   +1.61%       1044.41  34
 CBOT rice   9.65     -$0.04  -0.36%   +1.85%       $9.61    37
 WTI crude   54.14    $0.15   +0.28%   -0.57%       $53.09   59
 Currencies                                                  
 Euro/dlr    $1.056   $0.000  +0.02%   -0.16%                
 USD/AUD     0.7686   0.002   +0.22%   -0.35%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sunil Nair)
  

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