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GRAINS-Wheat hits four-month low on ample supplies, soybeans tick up
April 21, 2017 / 3:33 AM / 7 months ago

GRAINS-Wheat hits four-month low on ample supplies, soybeans tick up

    * Favourable outlook for U.S. hard red winter wheat crop
    * Lower than expected soybean exports keep lid on prices

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, April 21 (Reuters) - Chicago wheat was little
changed on Friday after dropping to a four-month low earlier in
the session, pressured by plentiful global supplies and an
improved weather outlook for the winter crop in the United
    Soybeans ticked higher, recouping the previous session's
decline, although slowing demand for U.S. shipments kept a lid
on the market while corn edged up after dropping more than 1
percent on Thursday.
    For the week, the July wheat contract has given up
almost 5 percent, the biggest weekly decline in eight months.
Corn has lost 3.7 percent after gaining almost 3 percent
last week, and soybeans are down 0.7 percent, giving up
some of last week's gains.
    The wheat market on Thursday suffered its biggest daily loss
since late August. Large export surpluses in key global
suppliers are shackling Chicago wheat futures.
    The market absorbed weather forecasts for the U.S. Plains
and Midwest that were largely favourable for winter wheat crops
as they near maturity.
    "The U.S. winter wheat crop is looking really good. Weather
concerns had been overplayed earlier," said Phin Ziebell,
agribusiness economist at National Australia Bank.
    "We are looking at another great year for wheat supplies
even though U.S. acreage is down. Yields are looking really
    The U.S. Department of Agriculture on Thursday said weekly
export sales of soybeans fell to 225,000 tonnes (old-crop and
new-crop combined), below trade forecasts for 400,000 to 800,000
    Corn export sales came in at 848,200 tonnes, near the low
end of expectations. Export sales of wheat were 551,100 tonnes.
    Brazilian farmers should produce a record 2016-17 corn crop
of 93.2 million tonnes this year, a Reuters poll indicated on
Thursday, topping the 89.6 million tonnes expected in a previous
    Corn output will be boosted by a record second corn crop
(winter crop), seen by market analysts surveyed by Reuters at 63
million tonnes. Soy production in 2016-17 is expected to reach
110.8 million tonnes compared to 106.8 million tonnes in a
previous poll.

 Grains prices at  0258 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  406.00  -0.25   -0.06%   -3.91%       427.40  25
 CBOT corn   357.50  -0.25   -0.07%   -1.17%       362.62  35
 CBOT soy    948.50  1.75    +0.18%   +0.26%       969.91  46
 CBOT rice   9.83    -$0.02  -0.20%   -2.19%       $9.94   27
 WTI crude   50.72   $0.01   +0.02%   +0.56%       $50.08  41
 Euro/dlr    $1.071  $0.007  +0.70%   +0.99%               
 USD/AUD     0.7525  -0.006  -0.80%   -0.62%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Kenneth Maxwell and
Christian Schmollinger)

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