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GRAINS-Soybeans eye 1st weekly gain in a month, wheat down for 2nd week
October 7, 2016 / 2:43 AM / a year ago

GRAINS-Soybeans eye 1st weekly gain in a month, wheat down for 2nd week

* Soybeans up on strong demand, harvest progress caps gains
    * Wheat faces 2nd week of decline on ample supplies

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 7 (Reuters) - Chicago soybeans were on track
to post their first weekly rise in a month on Friday, with
strong demand underpinning the market, although harvesting of a
record-large U.S. crop limited gains.
    Wheat faced a second week of declines as improved weather in
the Black Sea region and ample world supplies weighed on the
    The Chicago Board Of Trade's most-active soybean contract
 is up nearly one percent this week, the first weekly gain
since early September. 
    Wheat is down more than one percent, the second
straight weekly fall, and corn is up around 1.5 percent,
the biggest weekly gain in four weeks.
    "The soybean harvest is expanding but physical supplies are
tight where the harvest progress has been slow," said Kaname
Gokon at brokerage Okato Shoji in Tokyo.
    "Demand is strong and we can expect further buying next week
when Chinese return after holidays because the crush margins are
pretty good."
    Soybean crush margins CNSOY-RZO-MRG in China, the world's
biggest importer of the oilseed, hit their highest since early
July last month.
    The USDA reported weekly soybean export sales rose to 2.180
million tonnes from 1.693 million tonnes a week ago, well above
forecasts for 1.2 million to 1.5 million tonnes. 
    Weekly corn export sales of 2.602 million tonnes (old-crop
and new-crop combined) topped forecasts ranging from 1.6 million
to 2.1 million tonnes.
    Brazil's CONAB on Thursday morning forecast that 2016/17
soybean production in the country, a key exporter, will rise to
between 101.9 million and 104 million tonnes from 95.4 million
tonnes in the previous marketing year.
    CONAB pegged the corn harvest at 82.3 million to 83.8
million tonnes, up from 66.7 million tonnes in the 2015/16
marketing year. 
    The Brazil forecasts followed an outlook from the Buenos
Aires grains exchange on Wednesday that Argentine farmers will
likely harvest a record corn crop as they favour planting of 36
million tonnes in 2016/17, six million tonnes more than 2015/16.
    Commodity funds were net sellers of CBOT corn and wheat
futures contracts on Thursday and net buyers of soybean futures,
traders said. 

 Grains prices at  0222 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  397.50  1.75     +0.44%   +0.51%       401.84  49
 CBOT corn   341.75  1.25     +0.37%   -1.87%       333.38  58
 CBOT soy    961.75  3.25     +0.34%   -0.18%       960.95  50
 CBOT rice   10.11   $0.00    -0.05%   +0.10%       $9.75   71
 WTI crude   50.45   $0.01    +0.02%   +1.24%       $46.12  74
 Euro/dlr    $1.113  -$0.011  -0.97%   -0.82%               
 USD/AUD     0.7579  -0.007   -0.98%   -0.71%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Richard Pullin)

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