June 26, 2017 / 3:31 AM / 5 months ago

GRAINS-Wheat retreats from 1-year high, but output concerns support

    * Wheat falls after rally of nearly 3 pct on Friday
    * Corn jumps nearly 1 pct, rebounds from 3-month low
    * Soybeans rally nearly 0.5 percent

    By Colin Packham
    SYDNEY, June 26 (Reuters) - U.S. wheat futures fell 0.5
percent on Monday, retreating from a one-year high, although
fears of global production losses underpinned prices.
    Corn rose 1 percent, rebounding from a near three-month low
touched in the previous session, while soybeans rose nearly 0.5
    The most active wheat futures on the Chicago Board Of Trade
 fell 0.4 percent to $4.71-3/4 a bushel by 0258 GMT, having
closed up 2.7 percent on Friday when prices hit a high of
$4.80-1/2 a bushel - the highest since June 2016.
    Despite the price decline, the market remains nervous amid
forecasts for unfavourable weather in key producing regions in
the United States.
    "We think a higher turn in temperatures without almost
immediate rainfall relief would trigger another round of cuts to
crop forecasts," said Tobin Gorey, director of agricultural
strategy, Commonwealth Bank of Australia.
    With production of high protein U.S. wheat likely curtailed
by adverse weather, demand for high grade supplies was further
stoked by reports protein levels in lower quality crops were the
lowest in years.
    Concerns over French production also lent support, with the
state of French soft wheat declining sharply in the week to June
19, data from farming agency FranceAgriMer showed, suggesting
crops were already suffering from dry conditions before a
heatwave last week.
    The most active corn futures rose 0.9 percent to $3.61
a bushel, having closed down 1.4 percent in the previous session
when prices hit a low of $3.56-1/2 a bushel - the lowest since
March 31.
    The most active soybean futures rose 0.4 percent to
$9.08-1/4 a bushel, having closed little changed on Friday.
    Corn is under pressure from forecasts for largely benign
weather across key U.S. growing regions, analysts said.
    Traders were also readying for the next U.S. Department of
Agriculture's quarterly U.S. grain stocks report on June 30.
    Analysts expect the USDA to peg corn stocks as of June 1 at
5.123 billion bushels, the largest June 1 stocks since 1988 and
the third-highest in records dating to the 1920s.
    Traders expect soybeans stocks of 983 million bushels - the
highest June 1 figure since 2007 and the third-highest on
 Grains prices at  0258 GMT
 Contract       Last   Change   Pct chg   Two-day chg   MA 30  RSI 
 CBOT wheat   471.75    -1.75    -0.37%        +2.28%  442.03    55
 CBOT corn    361.00     3.25    +0.91%        -0.48%  372.99    33
 CBOT soy     908.25     3.75    +0.41%        +0.47%  934.08    28
 CBOT rice     11.21   -$0.04    -0.40%        +0.95%  $11.11    50
 WTI crude     43.45    $0.44    +1.02%        +1.66%  $47.03    36
 Euro/dlr     $1.120   $0.000    +0.04%        +0.41%              
 USD/AUD      0.7578    0.001    +0.17%        +0.49%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 (Reporting by Colin Packham; Editing by Richard Pullin)

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