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GRAINS-Wheat set for biggest weekly gain in 8 mths as dryness hits crops
June 9, 2017 / 3:44 AM / 5 months ago

GRAINS-Wheat set for biggest weekly gain in 8 mths as dryness hits crops

    * CBOT wheat up 4.7 percent, biggest weekly gain since
    * Spring wheat up 10.5 percent in fourth week of climbs
    * Dry weather seen hitting U.S., Canadian spring wheat crops

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, June 9 (Reuters) - Chicago wheat futures edged
higher on Friday with the market on track for its biggest weekly
gain in eight months, underpinned by hot and dry weather
threatening to reduce production in North America.
    Corn eased, giving up some this week's strong gains that
lifted the market to a one-year high, while soybean prices were
little changed after closing higher for the past five sessions.
    The Chicago Board of Trade most-active wheat contract
is up 4.7 percent this week, the biggest weekly gain since
mid-October 2016.
    Corn has risen 3.2 percent, the largest weekly gain
since March 3, and soybeans are up nearly 2 percent after
declining for the past four weeks.
    Spring wheat futures were on track for a fourth
week of gains, having risen 10.5 percent during the period.
    Weather is in focus, with a hot weekend expected in the
central United States early in the growing season for corn,
soybeans and spring wheat.
    "Markets are looking now at turning worries into forecast
cuts to spring wheat production in adjacent areas of the U.S.
Northern Plains and Canada's Prairies," said Tobin Gorey,
director of agricultural strategy at Commonwealth Bank of
Australia in Sydney. 
    "High temperatures and minimal moisture are obviously a bad
combination for crops."
    There was additional support for the soybean market on
strong demand.
    Imports of soybeans to China, the world's largest buyer of
the oilseed, rose in May by 25 percent from a year ago to the
highest on record as a backlog of previously purchased supplies
landed in the country, customs data showed on Thursday.
    Many U.S. growers who have finished planting corn they will
harvest this autumn took advantage of steep gains to sell
supplies remaining from last year.
    Still, record production in Brazil continues to cap gains.
    Brazil's agricultural statistics and supply agency Conab on
Thursday raised for the sixth time this year its estimate for
the country's 2016/17 soybean crop, now seen at 113.92 million
tonnes, up from 113 million tonnes in May's forecast.
    The agency said total corn output in the season should reach
93.83 million tonnes, above the previous 92.83 million tonnes
estimate due to near-perfect weather.
    Commodity funds were net buyers of CBOT corn, soybean and
wheat futures on Thursday.
    Trader estimates of net fund buying in corn ranged from
8,000 to 20,000 contracts, in soybeans from 5,000, to 10,000
contracts, and in wheat from 2,500 to 7,000 contracts.

 Grains prices at  0323 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  449.75  0.50     +0.11%   +3.21%       434.88  74
 CBOT corn   384.75  -1.00    -0.26%   +1.99%       371.69  67
 CBOT soy    938.25  0.25     +0.03%   +1.60%       950.80  57
 CBOT rice   11.22   -$0.02   -0.13%   +1.08%       $10.56  71
 WTI crude   45.58   -$0.06   -0.13%   -0.31%       $48.19  26
 Euro/dlr    $1.120  -$0.006  -0.52%   -0.70%               
 USD/AUD     0.7535  -0.001   -0.15%   +0.39%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral)

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