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GRAINS-Wheat jumps 2.7 pct to 2-year high on U.S. weather woes
July 3, 2017 / 5:22 AM / 5 months ago

GRAINS-Wheat jumps 2.7 pct to 2-year high on U.S. weather woes

    * Wheat prices firm as adverse weather threatens US output
    * CBOT most-active wheat up nearly 15 pct in three days
    * Soybeans extend two-day gains to 5 pct, corn almost 4 pct

 (Adds quote, updates prices)
    By Colin Packham and Naveen Thukral
    SYDNEY/SINGAPORE, July 3 (Reuters) - Chicago wheat futures
jumped 2.7 percent on Monday to hit their highest in two years
as forecasts for continued dry weather in key U.S. growing
regions stoked fears of production losses.
    Soybeans climbed more than 2 percent to extend two-day gains
beyond 6 percent, while corn has advanced about 4 percent since
Friday on the back of rally in wheat futures.
    The most-active wheat contract on the Chicago Board of Trade
 was up 2.7 percent at $5.40-1/4 a bushel by 0445 GMT,
after hitting its highest since July 2015 at $5.47-1/4 a bushel.
    "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
    "In addition to dry weather issues, we have short-covering
by funds," said one Australia-based commodities analyst. "We
might see some profit-taking by the end of the session."
    Soybeans climbed 1.6 percent to $9.70-1/4 a bushel,
near the session-high of 9.78 a bushel, the highest since May.
Soybeans rose 4.3 percent on Friday.
    Corn rose 1 percent to $3.84-3/4 a bushel, having
closed up 3.1 percent on Friday.
    Gains in corn and soybeans were capped by large U.S.
plantings and higher quarterly stocks figures.
    U.S. farmers seeded a record amount of soybeans this spring,
the government said on Friday, in the hope that strong export
demand would soak up much of the fall harvest despite bumper
crops in Brazil and Argentina that have swelled global stocks.

    All-wheat plantings fell to a record low of 45.657 million
acres, with ample global stocks and weak export prospects
pushing U.S. farmers away from that crop.
    Corn plantings rose unexpectedly from the U.S. Agriculture
Department's March estimate.
    Supplies for all three commodities remained robust, with
stocks of both corn and soybeans as of June 1 the third-biggest
ever for the period. Wheat stocks as of June 1 were the largest
in 29 years.
 Grains prices at  0445 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  540.25  14.25    +2.71%   +8.92%       466.51  86
 CBOT corn   384.75  3.75     +0.98%   +3.92%       382.59  62
 CBOT soy    970.25  15.50    +1.62%   +4.92%       937.68  77
 CBOT rice   11.81   -$0.01   -0.08%   -0.84%       $11.54  61
 WTI crude   46.17   $0.13    +0.28%   +2.76%       $46.36  64
 Euro/dlr    $1.141  -$0.001  -0.10%   -0.24%               
 USD/AUD     0.7667  -0.002   -0.25%   -0.20%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Colin Packham and Naveen Thukral; Editing by
Joseph Radford and Richard Pullin)

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