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GRAINS-Soybean prices rise from 1-yr low, ample supply caps gains
April 12, 2017 / 3:49 AM / 8 months ago

GRAINS-Soybean prices rise from 1-yr low, ample supply caps gains

    * Soybeans rise on short-covering, downside seen "limited"
    * Wheat up for 4th session, corn recoups Tuesday's losses

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, April 12 (Reuters) - Chicago soybeans rose on
Wednesday on short-covering, pulling away from a one-year low
hit in the previous session after the U.S. government raised its
estimates for global supplies.
    Wheat rose for a fourth straight session, and corn recouped
last session's losses, although forecasts of abundant supplies
kept a lid on all grain markets.     
    The Chicago Board of Trade most-active soybean contract
 rose 0.8 percent to $9.46-3/4 a bushel by 0315 GMT, after
hitting a one-year low at $9.29-3/4 a bushel on Tuesday.
    Corn gained 0.1 percent $3.67 a bushel. Wheat
was up 0.1 percent to $4.33-1/2 a bushel.
    The soybean market is especially struggling under the
pressure of a global supply glut. 
    The U.S. Department of Agriculture raised its forecast of
global soybean stocks at the end of the 2016-17 marketing year
to 87.41 million tonnes, from 82.82 million in March and well
above an average of trade estimates for 83.91 million tonnes.
    The figure reflected rising crop estimates for South
America's soy harvest. The agency pegged Brazil's crop at 111
million tonnes, up from the 108 million estimated last month. 
    Brazil's agricultural statistics agency Conab also raised
its estimate of the soybean crop to 110.2 million tonnes, from
107.6 million in March. 
    Rajesh Singla, head of agriculture research at Societe
Generale, said, however, that supply-side news has been factored
into the market. "Investors are covering short positions as the
downside from here looks limited. Going forward the focus will
be on U.S. weather."
    Corn futures also faced pressure on Tuesday from rising
estimates on South America's corn output, while the USDA left
its forecast of U.S. 2016-17 corn exports unchanged at 2.225
billion bushels. 
    The USDA raised its forecasts for U.S. and global wheat
inventories at the end of the 2016-17 marketing year, bumping up
its forecast of domestic wheat ending stocks to 1.159 billion
bushels, a near 30-year high. 
    A sunny week ahead in Argentina's Pampas grains belt should
allow farmers to resume corn and soy harvesting that was
interrupted over recent days by heavy rains, local
meteorologists said on Tuesday.
    Still, some 700,000 hectares of prime soybean and corn area
have been lost to bad weather in the 2016/17 crop year,
according to the Buenos Aires Grains Exchange. Harvesting
combines got stuck in soggy ground over recent days while cargo
trucks were delayed by flooded roads.
    Commodity funds were net sellers of CBOT corn and soybean
futures contracts on Tuesday and net buyers of wheat, traders

 Grains prices at  0315 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  433.50  0.25    +0.06%   +2.24%       433.87  62
 CBOT corn   367.00  0.50    +0.14%   +2.09%       365.35  57
 CBOT soy    946.75  7.50    +0.80%   +0.50%       987.14  35
 CBOT rice   10.21   -$0.06  -0.58%   -0.24%       $9.85   73
 WTI crude   53.53   $0.13   +0.24%   +2.47%       $50.18  81
 Euro/dlr    $1.060  $0.001  +0.09%   -0.41%               
 USD/AUD     0.7487  -0.001  -0.11%   -0.77%               
 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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