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GRAINS-Soybeans at 13-month low as S.American supply weighs; corn, wheat ease
May 30, 2017 / 2:31 AM / in 6 months

GRAINS-Soybeans at 13-month low as S.American supply weighs; corn, wheat ease

    * Soybeans fall to weakest since April 2016, down for 3rd
    * Record South American production weighs on CBOT soybeans

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 30 (Reuters) - Chicago soybean futures lost
more ground on Tuesday with the market dropping to a more than
13-month low as record supplies from South America added
    Corn and wheat edged lower after making strong gains in the
previous session.
    The most-active soybean contract on the Chicago Board
Of Trade fell 0.3 percent to $9.23-3/4 a bushel by 0209 GMT,
near the session low of $9.23-1/4 a bushel - the lowest since
April 2016. Soybeans closed down 1.4 percent on Friday.
    Corn lost 0.7 percent to $3.71-1/2 a bushel, having
gained 1.4 percent in the previous session and wheat gave
up 0.3 percent to $4.35 a bushel, having closed up 1.7 percent
on Friday.
    "The market continues to succumb to bulging supply from the
2016 season," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
    "The market is also worried by supply prospects for season
2017. Farmers in many places are switching to oilseeds."
    Record South American soybean production weighs on prices,
with Brazilian farmers looking to accelerate sales after a drop
in the local currency.
    U.S. farmers are actively planting soybeans and if the
weather remains benign, it could further boost supplies and keep
a lid on prices.
    Wheat has been drawing some support from recent wet weather
across key growing regions, which may damage maturing crops
although ample inventories from previous harvests are weighing
on prices.
    Argentina expects a record 2017/18 wheat crop of about 20
million tonnes thanks to farmers' investment in more and better
crop technology, the government's chief of agricultural
estimates told Reuters on Monday, a forecast well above private
    Argentine wheat is planted mostly in May through July, with
harvesting reaching into January.
    Still, Russian wheat export prices rose last week due to
concerns that cold and rainy weather in May could hit the
quality of the harvest and also due to a stronger rouble
currency, analysts said on Monday.
    Farmers are becoming more concerned about the new harvest
due to excessively wet and cold spring weather, Russian
agricultural consultancy SovEcon said. Many farmers still expect
a good crop but predict more modest quality.
    Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Friday and net sellers of soybeans, soymeal
and soyoil contracts, traders said.
 Grains prices at  0209 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  435.00  -3.25    -0.74%   +0.99%       433.23  60
 CBOT corn   371.50  -2.75    -0.73%   +0.61%       369.58  54
 CBOT soy    923.75  -2.75    -0.30%   -1.68%       960.01  25
 CBOT rice   10.91   -$0.06   -0.59%   -0.18%       $10.28  61
 WTI crude   49.84   $0.04    +0.08%   +1.92%       $48.97  53
 Euro/dlr    $1.112  -$0.004  -0.37%   -0.53%               
 USD/AUD     0.7429  -0.001   -0.09%   -0.23%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral; Editing by Gopakumar Warrier)

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