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GRAINS-Wheat eases for 2nd session as USDA forecasts higher output
June 12, 2017 / 12:58 AM / 5 months ago

GRAINS-Wheat eases for 2nd session as USDA forecasts higher output

    SINGAPORE, June 12 (Reuters) - Chicago wheat futures slid
for a second session on Monday, giving up some of last week's
gains as the U.S. government forecast higher production.
    Corn and soybeans lost ground on profit-taking although
concerns about crop-damaging hot and dry weather in the U.S.
Midwest continued to underpin both markets.
    
    FUNDAMENTALS
    * U.S. wheat supplies will be bigger than expected despite a
snowstorm in early May that analysts worried had severely
damaged the crop in Kansas, the top- producing state, the U.S.
Department of Agriculture said on Friday.
    * The agency boosted its forecast for U.S. winter wheat
production to 1.250 billion bushels from 1.246 billion, and
raised its yield projection in Kansas by 2 bushels per acre
(bpa) to 44.0 bpa.
    * The wheat market jumped almost 4 percent last week with
support from lower protein in U.S. wheat due to adverse weather.
    * Prospects for low protein in the U.S. harvest of hard red
winter wheat have magnified the importance of spring wheat, a
high-protein variety prized by millers for its quality. 
    * For corn and soybeans, U.S. Midwest weather will take
centre stage this week. Meteorologists predicted highs above 90
degrees Fahrenheit (32 Celsius) across much of the Midwest early
this week.
    * The USDA on Friday said U.S. soybean and corn ending
stocks for the 2016/17 and 2017/18 crop years would be larger
than analysts were expecting on average.
    * Large speculators trimmed their net short position in
Chicago Board of Trade corn futures in the week to June 6,
regulatory data released on Friday showed. 
    * The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and increased their net short
position in soybeans.
    
    MARKET NEWS
    * Asian stocks edged lower early on Monday following a slide
by U.S. technology shares and the dollar rose ahead of this
week's U.S. Federal Reserve policy meeting, with markets hoping
for more guidance on the central bank's interest rate path.

    
    DATA AHEAD (GMT)
    - 0800   Italy   Industrial output     Apr 
    - 1800   U.S.    Federal budget        May 
    - Monday, June 12, is a public holiday in Australia,
Malaysia and the Philippines.
    
 Grains prices at  0044 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  442.00  -3.75   -0.84%   -1.61%       435.68  57
 CBOT corn   386.00  -1.75   -0.45%   +0.06%       372.99  69
 CBOT soy    941.00  -0.50   -0.05%   +0.32%       949.76  59
 CBOT rice   11.30   -$0.03  -0.22%   +0.58%       $10.69  72
 WTI crude   46.07   $0.24   +0.52%   +0.94%       $48.09  33
 Currencies                                                
 Euro/dlr    $1.121  $0.001  +0.12%   -0.06%               
 USD/AUD     0.7531  0.000   +0.07%   -0.15%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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