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GRAINS-Soybeans face weekly decline on Brazil bumper crop forecasts
March 10, 2017 / 3:23 AM / 8 months ago

GRAINS-Soybeans face weekly decline on Brazil bumper crop forecasts

    * Soybeans down 3.1 pct this week, biggest loss since late
    * Corn loses 3.5 pct for the week, wheat falls almost 2 pct

 (Adds quote, updates prices)
    By Naveen Thukral
    SINGAPORE, March 10 (Reuters) - Chicago soybean futures were
poised for a weekly decline on Friday, pressured by forecasts of
a record Brazilian crop.
    Wheat edged up on the day but was facing a weekly loss on
ample world supply. Corn was set for its biggest weekly loss
since late August.
    "Soybean crop yields out of South America are looking very
good. All those weather concerns that we had earlier are gone,"
said Phin Ziebell, agribusiness economist, National Australia
    Chicago Board of Trade soybeans have given up 3.1
percent this week, falling five out of seven weeks. On Friday,
CBOT soybeans hit a two-month low at $10.05-1/2 a bushel. 
    Wheat is down almost 2 percent this week after
climbing the last two, while corn has lost 3.5 percent,
set for its biggest decline since the week ended Aug. 26. 
    The soybean market is facing headwinds as the U.S.
Department of Agriculture (USDA) in a monthly report increased
its forecast for Brazil's 2016/17 soybean harvest to a record
high 108 million tonnes, from 104 million in February. 
    The agency also cut its estimate of U.S. 2016/17 soybean
exports, citing competition from the Brazilian crop, and raised
its forecast of U.S. soy year-ending stocks to 435 million
bushels, above an average of analyst estimates.
    Earlier on Thursday, Brazil's agricultural statistics agency
Conab raised its estimate for the country's 2016/17 soybean crop
to 107.6 million tonnes on Thursday, more than 2 million tonnes
above its previous forecast. 
    Recent rains in Argentina's main soy-growing regions have
helped maximize yields in higher-altitude areas not affected by
floods that have soaked lower-lying fields, the Buenos Aires
Grains Exchange also said in its weekly crop report on Thursday.
    The corn market as well is facing pressure as the USDA upped
its estimates of corn output in Brazil and Argentina. The USDA
raised its forecast of global 2016/17 corn ending stocks to
220.68 million tonnes, above an average of trade expectations
and up from 217.56 million last month. 
    Wheat is down for the week, but the market on Friday found
underlying support after the USDA trimmed its forecast of U.S.
2016/17 wheat ending stocks to 1.129 billion bushels, down 10
million from last month. But forecasts calling for much-needed
moisture in the Plains kept a lid on gains. 

 Grains prices at  0245 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  444.25   0.25    +0.06%   -2.68%       450.98   43
 CBOT corn   367.25   0.25    +0.07%   -2.33%       374.63   36
 CBOT soy    1005.75  -5.25   -0.52%   -1.90%       1043.67  30
 CBOT rice   9.72     $0.01   +0.15%   +1.99%       $9.73    59
 WTI crude   49.71    $0.43   +0.87%   -1.13%       $52.99   25
 Euro/dlr    $1.059   $0.002  +0.17%   +0.51%                
 USD/AUD     0.7524   0.002   +0.27%   -0.03%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Joseph Radford and Tom

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