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GRAINS-U.S. spring wheat hits 3-yr high, Chicago wheat up for 3rd day
June 29, 2017 / 3:06 AM / 5 months ago

GRAINS-U.S. spring wheat hits 3-yr high, Chicago wheat up for 3rd day

    * Wheat gains more ground as dry weather hits U.S. spring
    * Soybean firm, corn under pressure from favourable weather

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 29 (Reuters) - U.S. spring wheat futures hit
a three-year high on Thursday as dry weather threatened to
reduce U.S. spring crop production, while Chicago wheat futures
rose for a third consecutive session.
    Soybeans gained more ground in early Asian trade, while corn
was unmoved with pressure from beneficial weather.
    The wheat market has been supported as crop conditions in
the northern U.S. Plains spring wheat region have deteriorated
sharply in the last month due to hot and dry weather.
    "The wheat market is in bullish trend as weather is becoming
a big issue for the U.S. spring wheat crop," said Kaname Gokon
of Tokyo brokerage Okato Shoji. 
    "We are also seeing strong demand for U.S. products."
    U.S spring wheat futures rose 2.1 percent to $7.19
a bushel, highest since July 2014.
    Analysts expect the U.S. Department of Agriculture on Friday
to lower its estimate of U.S. spring wheat plantings for 2017.
Given anecdotal reports of farmers baling spring wheat fields
this month for hay, traders will also monitor the government's
forecast of harvested acres.
    Russia has started grain harvesting in its southern regions,
with yields so far lower than at the same date a year ago,
following a delay caused by rainy weather, the agriculture
ministry said in statement on Wednesday.
    The world's leading global wheat exporter is widely expected
to harvest a major grain crop this year, although it will be
lower than the record crop in 2016.
    Chicago Board of Trade soybeans firmed while corn is under
pressure after beneficial showers moved across top producer Iowa
overnight. However, forecasts called for warmer and drier
conditions in the Midwest after the Fourth of July holiday.
    Traders were squaring positions ahead of the USDA's acreage
and quarterly stocks reports, publications that often trigger
sharp price movements.
    Commodity funds were net sellers of CBOT corn futures
contracts on Wednesday and net buyers of soybeans and wheat,
traders said.
 Cont  Last  Chan   Pct  Two-    MA  RSI 
 ract          ge   chg   day    30  
 CBOT  475.  2.50  +0.5  +1.3  460.    57
 whea    50          3%    9%    02  
 CBOT  357.  0.25  +0.0  -0.6  371.    26
 corn    00          7%    3%    79  
 CBOT  924.  3.00  +0.3  #DIV  924.    41
 soy     75          3%  /0!     75  
 CBOT  11.7  -$0.  -0.0  +3.9  $11.    59
 rice     4    01    9%    9%    19  
 WTI   44.9  $0.1  +0.4  +1.5  $46.    55
 crud     3     9    2%    6%    61  
 Euro  $1.1  $0.0  +0.2  +0.6            
 /dlr    41    03    8%    3%        
 USD/  0.76  0.00  +0.2  +0.9            
 AUD     57     2    2%    9%        

 (Reporting by Naveen Thukral; Editing by Richard Pullin and
Amrutha Gayathri)

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