March 7, 2013 / 3:57 AM / 4 years ago

GRAINS-Wheat climbs after sharp loss but still near 9-month low

* Wheat firms on bargain hunting
    * Bumper global wheat crop expected
    * Corn too rebounds after losses in previous session

    By Colin Packham
    SYDNEY, March 7 (Reuters) - U.S. wheat edged higher on
Thursday due to bargain hunting after posting its biggest
one-day drop in nearly four months in the previous session.
    The grain, however, stayed close to nine-month lows hit on
Wednesday, weighed down by improved crop weather.
    Corn rose too after recording its biggest daily loss in
almost six months in the previous session, while soybeans were
little changed for the second straight day.
    Chicago Board Of Trade May wheat rose 0.26 percent to
$6.85-1/2 a bushel by 0256 GMT, having closed down 3.15 percent
on Wednesday, the biggest daily fall since November 12 and its
lowest close since June 15. 
    May corn rose 0.33 percent to $6.90-3/4 a bushel,
having slid 2.9 percent in the previous session, the biggest
fall since mid-September. 
    "It is not uncommon after such falls in the previous session
to see some rebound in Asian trading," said Luke Mathews,
commodities strategist at the Commonwealth Bank of Australia.
    May soybeans were little changed at $14.66-1/2 a
bushel, having closed near flat on Wednesday.
    
    WEATHER WEIGHS
    Wheat had dropped as the outlook for the winter crop
improved following the fall of 5 to 10 inches (13 to 25 cm) of
wet snow on the Midwest on Tuesday. Additional moisture is
expected to provide more relief to bone-dry soils later this
week. 
    The improved weather has led some forecasters to raise
projections for the U.S. wheat crop. Lanworth on Wednesday
raised its forecast for U.S. wheat production by 6 percent due
to increased precipitation in the southern and central U.S.
Plains. 
    Traders are readying for the next U.S. Department of
Agriculture report on Friday, which will update its forecasts
for 2012/13 U.S. and global wheat, soybean and corn inventories.
    Analysts, on average, expect the department to increase its
estimates for U.S. wheat and corn inventories from last month
and trim its outlook for soybean supplies, according to a
Reuters poll. 
    Analysts said wheat and corn were also drawing support from
the squaring of positions ahead of the forecast.
    New-crop wheat has come under pressure in recent days amid
expectations of a bumper 2013/14 crop.
    Global wheat production will likely total near record levels
in the 2013/14 season, Joe Glauber, chief economist at the USDA
said on Tuesday, following forecasts for increased plantings.
 
    Exports increases also weighed on the market. 
    India will do everything it can to push record volumes of
wheat onto the global market to cut massive stocks, a senior
farm ministry official said on Wednesday. 
    And Argentina has authorized exports of 5 million tonnes of
wheat for the crop that farmers will begin planting in the
coming months, sources said on Wednesday. 
    
    
  Grains prices at  0256 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     685.50     1.75  +0.26%    -2.90%     742.81   20
  CBOT corn      690.75     2.25  +0.33%    -2.57%     697.26   49
  CBOT soy      1466.50     0.50  +0.03%    +0.00%    1443.64   60
  CBOT rice      $15.36    $0.02  +0.10%    -0.13%     $15.93   27
  WTI crude      $90.46    $0.03  +0.03%    -0.40%     $94.83   27
  Currencies                                                
  Euro/dlr       $1.299   $0.002  +0.18%    -0.48%
  USD/AUD         1.024    0.002  +0.15%    -0.15%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Editing by Muralikumar Anantharaman)

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