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GRAINS-Wheat up on U.S. weather concerns, soybeans fall for 2nd day
October 10, 2016 / 2:52 AM / a year ago

GRAINS-Wheat up on U.S. weather concerns, soybeans fall for 2nd day

* Chicago wheat rises 0.8 pct after days of decline
    * Dryness across U.S. wheat belt underpins prices
    * Soybeans ease further as dry Midwest aids harvest

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 10 (Reuters) - Chicago wheat rose on Monday
with the market snapping two sessions of decline as dry weather
in parts of the U.S. winter wheat growing areas raised concerns
over supplies.
    Soybeans lost more ground as U.S. farmers are expected to
boost the pace of harvesting on forecasts of dry weather in the
Midwest, while corn edged higher on support from gains in wheat.
    Chicago Board of Trade's most-active wheat contract 
rose 0.8 percent to $3.97-3/4 a bushel by 0225 GMT, having lost
2.5 percent in the last two sessions. 
    Soybeans gave up 0.6 percent to $9.50-3/4 a bushel and
corn gained 0.2 percent to $3.40-1/4 a bushel.
    Wheat is drawing support on concerns about dry weather
impacting U.S. hard red winter wheat production.
    "Dry western parts of the U.S. hard red winter wheat region
have received only modest rainfall on small patches over the
weekend," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "Forecasters expect the dry weather to continue. Soil
moisture is more likely to decline than anything else next week.
 The clock is ticking louder for the U.S. wheat crop."
    In addition, French soft wheat exports slowed in August
while imports accelerated, customs data showed on Friday,
showing the impact of a poor harvest in the European Union's
biggest grain producer.
    France shipped about 913,000 tonnes of soft wheat abroad in
August, the second month of the 2016/17 marketing season, less
than the 1.1 million tonnes exported in July.
    The soybeans market is being weighed down by forecasts of
dry weather in the weeks ahead which will aid the harvest after
excessive rains in September hit the maturing crop.
    North America's wettest harvest in about five years is
hiking farmers' costs as they dry crops to avoid spoilage and
forcing them to take price discounts that are pinching incomes
already under stress. 
    The U.S. Agriculture Department said on Friday exporters
reported the sale of 195,000 tonnes of soybeans to unknown
buyers for delivery during the 2016/17 marketing year.
 
    The USDA report on Wednesday is expected to show that U.S.
farmers will probably harvest 15.060 billion bushels of corn
this year, based on an average yield of 173.5 bushels per acre.
 
    Soybean production was seen at 4.286 billion bushels, with
yields averaging 51.5 bushels per acre, according to the average
of estimates by analysts surveyed in a Reuters poll.
   
 Grains prices at  0225 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  397.75  3.00     +0.76%   +0.51%       400.49  51
 CBOT corn   340.25  0.50     +0.15%   -0.07%       334.11  56
 CBOT soy    950.75  -6.00    -0.63%   -0.81%       959.67  40
 CBOT rice   10.10   $0.00    +0.05%   -0.10%       $9.76   71
 WTI crude   49.31   -$0.50   -1.00%   -2.24%       $46.16  61
 Currencies                                                 
 Euro/dlr    $1.119  -$0.001  -0.10%   +0.35%               
 USD/AUD     0.7594  0.002    +0.25%   +0.16%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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