July 3, 2017 / 12:52 AM / 4 months ago

GRAINS-Wheat jumps 4 percent to highest in nearly two years

    * Wheat prices firm as adverse weather threatens US output
    * Soybeans extend two-day gains to 6.5 pct
    * Corn prices climb 1.5 percent

    By Colin Packham
    SYDNEY, July 3 (Reuters) - U.S. wheat prices jumped 4
percent on Monday to hit their highest in nearly two years as
forecasts for continued dry weather in key U.S. growing regions
stoked fears over possible production losses.
    Soybeans climbed more than 2 percent to extend two-day gains
beyond 6.5 percent, while corn advanced 1.5 percent.
    The most active wheat futures on the Chicago Board of Trade
 had risen 4 percent to $5.47-1/4 a bushel by 0045 GMT, the
highest since July 20, 2015. 
    "U.S. spring wheat is frying and this threatens to further
reduce production, beyond (forecasts by) the U.S. Department of
Agriculture," said Andrew Woodhouse, grains analyst at Advance
Trading Australasia.
    The U.S. Department of Agriculture (USDA) on Friday cut its
estimate of U.S. spring wheat plantings to 10.9 million acres,
down from its March forecast of 11.3 million and below a range
of trade expectations. It projected harvested acres at 10.5
million.
    The most active soybean futures had climbed 2 percent
to $9.74-1/4 a bushel on Monday, near the session-high of 9.78 a
bushel, the highest since May 17. Soybeans rose 4.3 percent on
Friday.
    Analysts said soybeans were drawing support from the USDA's
lower-than-expected estimates for plantings and June 1 stocks.
    The estimate for soybean plantings came in at 89.513 million
acres, compared with the 89.482 million acres predicted in
March.
    The most active corn futures rose 1.7 percent to
$3.87-1/2 a bushel, having closed up 3.2 percent on Friday.
    Gains in corn, however, were capped by a
larger-than-expected U.S. plantings and quarterly stocks
figures, analysts said.
    The USDA said farmers planted 90.886 million acres of corn,
up 890,000 acres from the government's March forecast. Analysts
had been expecting corn plantings of 89.903 million acres,
according to the average of analysts estimates in a Reuters
poll.
            
 Grains prices at  0045 GMT
 Contract        Last  Change  Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat    547.25   21.25   +4.04%      +10.33%  466.74    87
 CBOT corn     387.50    6.50   +1.71%       +4.66%  382.68    64
 CBOT soy      974.25   19.50   +2.04%       +5.35%  937.82    77
 CBOT rice      11.68  -$0.14   -1.14%       -1.89%  $11.53    61
 WTI crude      46.23   $0.19   +0.41%       +2.89%  $46.36    65
 Currencies                                                      
 Euro/dlr      $1.142  -$0.00   -0.06%       -0.21%              
                            1                                
 USD/AUD       0.7687   0.000   +0.01%       +0.07%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  

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