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GRAINS-Wheat drops for 3rd day, near 6-wk low on U.S. crop outlook
March 22, 2017 / 3:42 AM / 9 months ago

GRAINS-Wheat drops for 3rd day, near 6-wk low on U.S. crop outlook

    * Wheat falls, holds near lowest since early Feb
    * Soybeans struggle with record Brazilian crop, corn eases

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, March 22 (Reuters) - Chicago wheat slid for a
third consecutive session on Wednesday, trading near the
previous session's six-week low as forecasts for rain improved
the prospects for the U.S. winter crop.
    Soybeans edged lower after closing marginally higher with
the market remaining under pressure from all-time high Brazilian
harvest. 
    "Global wheat stocks are huge and yields are looking big,"
said Phin Ziebell, agribusiness economist at National Australia
Bank. "Even though U.S. plantings are down this year, yields are
expected to be good. Black sea has a lot of wheat and Europe's
production outlook is good."
    The Chicago Board Of Trade most-active wheat contract
fell 0.4 percent to $4.25 a bushel by 0255 GMT, having closed
down 0.9 percent on Tuesday when prices hit a low of $4.23 a
bushel - weakest since Feb. 7. 
    Soybeans gave up 0.1 percent to $10.00-1/4 a bushel,
having firmed 0.2 percent on Tuesday, and corn lost 0.1
percent to $3.61 a bushel, having closed down 0.6 percent in the
previous session. 
    Wheat is under pressure as forecasts for the northern U.S.
Plains promise more soil moisture ahead of planting season.
    Rains are also expected further south, which will benefit
the winter crops there that have emerged from dormancy. 
    Crop analysts also continued to raise estimates of Brazil's
ongoing soybean harvest to new records. 
    Brazil's newest soybean frontier, the Matopiba region
stretching across four northern states, is contributing to a
record crop this year as rains spur a recovery in agricultural
yields after several drought-hit seasons. 
    But even as Brazilian soybean production hits historically
high levels, processors in China are making losses, an
indication there could be a demand slowdown from the world's
biggest importer of the beans. 
    Crush margin for imported soybeans in Shandong province
JCI-SBMG-SHDNI slid to negative 121 yuan after remaining in
positive territory between September and February. 
    A record harvest was also expected in Paraguay, the world's
fourth-biggest soybean exporter.
    Commodity funds were net sellers of CBOT corn and wheat
futures contracts on Tuesday. They were net buyer of soybeans
and soyoil, and net sellers of soymeal.
    
 Grains prices at  0255 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  425.00   -1.50    -0.35%   -1.22%       448.24   43
 CBOT corn   361.00   -0.25    -0.07%   -0.69%       372.52   43
 CBOT soy    1000.25  -1.25    -0.12%   +0.08%       1030.10  39
 CBOT rice   9.75     -$0.02   -0.26%   -1.12%       $9.71    60
 WTI crude   48.08    -$0.16   -0.33%   -0.29%       $51.66   35
 Currencies                                                   
 Euro/dlr    $1.079   -$0.002  -0.15%   +0.51%                
 USD/AUD     0.7655   -0.003   -0.43%   -0.96%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Tom Hogue)
  

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