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CORRECTED-GRAINS-Wheat at 1-month high on supply fears; soy, corn firm
January 22, 2013 / 3:17 AM / 5 years ago

CORRECTED-GRAINS-Wheat at 1-month high on supply fears; soy, corn firm

(Corrects first paragraph to rising for six out of the last
seven sessions, not five)
    * U.S. wheat up 0.9 pct; corn, soy rise 0.8 pct
    * Drought in U.S. Plains raises wheat supply concerns
    * Dryness in Argentina, south Brazil may hurt soy crop
    * China 2012 corn, rice imports at record high

    By Naveen Thukral
    SINGAPORE, Jan 22 (Reuters) - Chicago wheat climbed to a
one-month high on Tuesday, rising for six out of the last seven
sessions, as worsening drought across the U.S. grain belt
triggered concerns about global supplies.
    Soybeans and corn rose 0.8 percent, building on the last two
weeks of gains, with prices underpinned by dryness in parts of
Argentina and Brazil.
    Dry weather should continue through at least the end of
January in the stricken U.S. Plains, which produce most of the
country'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 concerns about South America's soybean crop,
which is forecast to hit a record high.
    "There are difficult growing conditions for wheat throughout
the United States," said Luke Mathews, a commodities strategist
at the Commonwealth Bank of Australia.
    "The wet bias that existed in Argentina earlier in the
season has now shifted to dry bias. Most people are expecting
some crop stress to evolve."
    Chicago Board of Trade March wheat rose 0.9 percent to
$7.98-1/2 a bushel by 0245 GMT, after touching a high of
$7.99-3/4 a bushel, highest since Dec. 20. 
    March soybeans rose 0.8 percent to $14.40-1/4 a bushel and
March corn added 0.8 percent to $7.33-1/4 a bushel.
    Rains will fall over Brazil's northeast and the main
center-west soy belt this week, while the southern producing
states should remain dry for a second straight week, local
meteorologist Somar said on Monday. 
    The Brazilian and U.S. governments have raised their
forecasts for a record soybean crop this month, while local
analyst Agroconsult has said it expects record soy from Brazil,
adding 900,000 tonnes of soybeans for an expected
84-million-tonne soy crop.
    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.
    The market is shifting its focus to planting for U.S. corn
and soybean crops.
    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.
    There was support for corn and wheat futures from Chinese
data showing record grain imports.
    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.
 

  Prices at  0245 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     798.50     7.25  +0.92%   871.03   71
  CBOT corn      733.25     5.75  +0.79%   766.35   72
  CBOT soy      1440.25    11.00  +0.77%  1578.55   56
  CBOT rice      $15.20    $0.04  +0.26%   $15.47   59
  WTI crude      $95.45   -$0.11  -0.12%   $89.16   76
  Currencies                                                
  Euro/dlr       $1.331   $0.102  +8.28%   
  USD/AUD         1.052   -0.003  -0.32%   
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 

 (Editing by Miral Fahmy)

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