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GRAINS-Wheat near 3-1/2 month high on supply concerns, soy firm
October 7, 2013 / 1:17 AM / 4 years ago

GRAINS-Wheat near 3-1/2 month high on supply concerns, soy firm

SINGAPORE, Oct 7 (Reuters) - U.S. wheat edged higher on
Monday, rising for nine out of 11 sessions and trading near a
3-1/2 month high on concerns over weather damaging crops in key
producing countries.
    Soybeans climbed 0.4 percent, gaining from last week's
19-month low after a forecast showed lower U.S. production,
while corn ticked lower on seasonal harvest pressure.
    
    FUNDAMENTALS
    * Ukraine's wheat harvest could be down by a third to about
15 million tonnes in 2014 from around 22 million tonnes this
year because heavy rains will cut the sowing area, the
agriculture minister said on Friday. 
    * Rains earlier this year damaged the wheat crop in top
grower China, while frost hampered wheat in Argentina and
Brazil. All this led to increased demand for exports from the
United States and Canada.
    * This year's Canadian wheat crop will be the largest ever,
but the estimate of 33.026 million tonnes was within analysts'
expectations, according to data released by Statistics Canada.
 
    * Private analytics firm Informa Economics lowered its
estimate of U.S. 2013 soybean yield and production while raising
its corn crop estimates.
    * The firm, in its monthly U.S. and world crop reports
issued on Friday, projected U.S. 2013 soybean production at
3.176 billion bushels, with a yield of 41.7 bushels per acre
(bpa). The figures are below Informa's Sept. 20 estimates for a
3.224 billion bushel crop with a yield of 42.4 bpa.
    * Informa raised its corn yield estimate to 158.8 bpa from
157.6, and increased its production forecast to 14.010 billion
bushels from 13.889 billion.
    * Wet weather and another storm system later this week will
slow harvesting of the 2013 U.S. corn and soybean crops, an
agricultural meteorologist said.
    * The ongoing shutdown of the U.S. government - including
the Department of Agriculture - is likely to delay the release
of the U.S. harvest report on Monday and the agency's monthly
supply and demand report due in a week.
    * Soy planting in Mato Grosso, Brazil's top soy state, is
7.2 percentage points behind the same time a year ago because of
too little rain, the state's farm research institute IMEA said
on Friday. 
    Just 1.4 percent of the expected crop has been sown,
compared with 8.6 percent on Oct. 4, 2012, IMEA said in a weekly
report. 
    * Commodity funds bought a net 5,000 Chicago Board of Trade
corn contracts on Friday, trade sources said. They bought 6,000
soybeans and sold 2,000 wheat. 
    
    MARKET NEWS
    * Asian markets look set for a cautious start to the week on
Monday, with U.S. stock futures and the dollar coming under
pressure as politicians in Washington showed no signs of making
progress over the weekend in resolving the U.S. budget standoff.
 
    
    DATA/EVENTS (GMT) 
0500 Japan Coincident indicator 
0500 Japan Leading indicator    
0830 Euro zone Sentix index     
        
  Grains prices at  0038 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     688.25     1.25  +0.18%   867.35   72
  CBOT corn      442.50    -0.75  -0.17%   756.66   34
  CBOT soy      1299.75     4.75  +0.37%  1573.87   44
  CBOT rice      $14.93    $0.06  +0.40%   $15.47   27
  WTI crude     $103.47   -$0.37  -0.36%   $89.43   45
  Currencies                                                
  Euro/dlr       $1.357   $0.128 
  USD/AUD         0.945   -0.111 
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
                                                                                                                            
 
 (Reporting by Naveen Thukral; Editing by Joseph Radford)

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