January 22, 2013 / 1:56 AM / 5 years ago

GRAINS-Wheat at 1-month top on supply fears, soy up almost 1 pct

SINGAPORE, Jan 22 (Reuters) - U.S. wheat climbed 0.9 percent
to a one-month high on Tuesday as worsening drought across the
U.S. wheat belt triggered concerns over global supplies, while
soybeans rose almost 1 percent on the back of dryness in South
America.
    Corn was up 0.7 percent, tracking gains in wheat and soybean
futures. 
    
    FUNDAMENTALS
    * Dry conditions are forecast through the end of the month
in the U.S. Plains that grow most of the nation's wheat.
 
     Severe drought in the Plains left the U.S. winter wheat
crop at an all-time low before it entered dormancy, the U.S.
Agriculture Department said late last year.
    * A turn to dry weather in Argentina and in southern Brazil
is beginning to cause concern among crop and market interests.
    * Brazil will likely produce 2.35 percent less corn from the
2012/13 crop than it did a year earlier after a later soybean
harvest leaves a smaller window for autumn corn planting,
analyst Safras & Mercado said on Monday. 
    * Still, Safras raised its estimate for corn production
slightly to 70.7 million tonnes from the 69 million tonnes it
had forecast in December, citing improving yields in the south.
    * Private analytics firm Informa Economics raised its
forecast for 2013 U.S. corn plantings to 99.303 million acres
from 99.026 million.
    * If realized, U.S. corn acreage would be the largest since
1936. Informa also cut its soybean acreage estimate to 78.777
million from 78.962 million.
    * China, the world's top consumer of grains, imported a
record high amount of corn and rice in 2012 while its wheat
imports surged to an 8-year high, driven by strong domestic
demand and cheap international prices during the first half of
the year.
    
    MARKETS NEWS    
    * Ahead of the Bank of Japan's decision, which comes after a
two-day policy meeting, the yen's recent violent selloff came to
an abrupt halt on Tuesday as investors waited to see if the BOJ
would deliver its most aggressive effort yet to beat years of
economic stagnation, or disappoint. 
    * Asian shares also marked time ahead of the BOJ's
announcement, with the MSCI's broadest index of Asia-Pacific
shares outside Japan nearly flat.
        
    DATA/EVENTS (GMT)
    0300  Japan   BOJ rate decision                 
    1000  Germany ZEW economic sentiment  Jan       
    1330  U.S.  Chicago Fed National Activity Index 
    1500  U.S.  Existing home sales     Dec          
    1500  U.S.  Richmond Fed composite index  Jan   
        
  Prices at  0127 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     798.25     7.00  +0.88%   871.02   71
  CBOT corn      732.50     5.00  +0.69%   766.33   71
  CBOT soy      1441.50    12.25  +0.86%  1578.59   56
  CBOT rice      $15.17    $0.01  +0.03%   $15.47   57
  WTI crude      $95.41   -$0.15  -0.16%   $89.16   76
  Currencies                                                
  Euro/dlr       $1.331   $0.102  +8.28%   
  USD/AUD         1.051   -0.005  -0.45%   
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Muralikumar
Anantharaman)

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