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GRAINS-Wheat eases for second session as USDA forecasts higher output
June 12, 2017 / 3:58 AM / 5 months ago

GRAINS-Wheat eases for second session as USDA forecasts higher output

    * USDA raises f'cast for wheat output despite adverse
    * Corn, soybeans eye U.S. weekly crop report for direction

 (Adds details, quote)
    By Naveen Thukral
    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 Midwest
United States continued to underpin both markets.
    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 (USDA) 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 Chicago Board of Trade most-active wheat contract
fell 0.6 percent to $4.43 a bushel by 0328 GMT, corn gave
up 0.5 percent to $3.86 a bushel and soybeans fell 0.2
percent to $9.39-3/4 a bushel.
    "U.S. wheat market is facing harvest pressure and the crop
looks bigger despite weather issues," said Kaname Gokon of Tokyo
brokerage Okato Shoji.
    "Corn and soybeans will take direction from the weekly crop
report due later."
    The wheat market jumped almost 4 percent last week supported
by concerns that adverse weather would result in a lower protein
content in the U.S. winter wheat crop.
    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
    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 commitment
of traders report also showed that non-commercial traders, a
category that includes hedge funds, trimmed their net-short
position in CBOT wheat and increased their net-short position in
 Grains prices at  0328 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  443.00  -2.75   -0.62%   -1.39%       435.71  59
 CBOT corn   386.00  -1.75   -0.45%   +0.06%       372.99  69
 CBOT soy    939.75  -1.75   -0.19%   +0.19%       949.72  57
 CBOT rice   11.30   -$0.03  -0.22%   +0.58%       $10.69  72
 WTI crude   46.06   $0.23   +0.50%   +0.92%       $48.09  33
 Euro/dlr    $1.120  $0.001  +0.10%   -0.08%               
 USD/AUD     0.7523  0.000   -0.04%   -0.25%               
 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
Christian Schmollinger)

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