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GRAINS-Wheat falls for 3rd day as U.S., Black Sea weather improves
January 12, 2017 / 3:41 AM / 7 months ago

GRAINS-Wheat falls for 3rd day as U.S., Black Sea weather improves

4 Min Read

* Chicago wheat eases, trades near last session's one-week
low
    * Corn falls for 3rd day ahead of key U.S. reports, soybeans
down

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Jan 12 (Reuters) - Chicago wheat futures slid for
a third session on Thursday, trading near one-week lows as the
market faced pressure from forecasts of favourable weather in
the U.S. Plains and the Black Sea region.
    Corn and soybeans lost more ground as investors in
agricultural markets awaited key U.S. government reports due at
1700 GMT.
    The U.S. Department of Agriculture will release a series of
reports, including U.S. quarterly grain stocks, U.S. annual crop
production, U.S. winter wheat seeding and its monthly World
Agricultural Supply and Demand Estimates. 
    "The weather is a key player in the wheat market, U.S. and
other regions, including Ukraine are looking good," said Rajesh
Singla, head of agriculture research at Societe Generale.
    "The second issue is the number of acres U.S. farmers
planted with wheat because the cost of production is much higher
than the current price. If there is a big decline in acreage,
let's say 5 to 10 pct, it will support wheat prices."
    The Chicago Board of Trade most-active wheat contract 
had fallen 0.2 percent to $4.18 a bushel by 0317 GMT, having
closed down 1.9 percent on Wednesday when prices hit a one-week
low of $4.12 a bushel.
    Corn gave up 0.3 percent to $3.56-1/4 a bushel and
soybeans lost 0.4 percent to $10.07-3/4 a bushel.
    Wheat is being pressured by expectations that weekend storms
would help recharge soil moisture in Oklahoma and Kansas, where
dry conditions have stressed dormant hard red winter wheat
crops.
    A substantial snow layer has protected Ukrainian and Russian
winter crops from severe frosts which came this weekend, analyst
and weather forecasters said on Tuesday. 
    For soybeans, an all-time high Brazilian production is
likely to provide headwinds to the market. 
    Brazil is likely to produce a record 2016-17 soybean crop of
104.4 million tonnes, up from a November estimate of 102.6
million tonnes, as favourable climate conditions boost
production prospects, consultancy Agroconsult said on Wednesday.
    China has increased punitive tariffs on imports of a U.S.
animal feed ingredient known as distillers' dried grains (DDGS)
from levels first proposed last year, potentially escalating a
trade spat between the world's two largest economies.
 
    Commodity funds were net sellers of CBOT wheat, corn and
soymeal futures on Wednesday. They were net buyers of CBOT
soybeans and soyoil. 
    
 Grains prices at  0317 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  418.00   -0.75   -0.18%   -2.17%       409.72   58
 CBOT corn   356.25   -1.00   -0.28%   -1.04%       354.33   56
 CBOT soy    1007.75  -3.75   -0.37%   +0.25%       1026.32  51
 CBOT rice   9.63     $0.02   +0.21%   -0.62%       $9.79    46
 WTI crude   52.17    -$0.08  -0.15%   +2.66%       $52.18   46
 Currencies                                                  
 Euro/dlr    $1.060   $0.002  +0.14%   +0.40%                
 USD/AUD     0.7460   0.002   +0.27%   +1.26%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral)

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