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GRAINS-Wheat prices drop 3 pct, edge away from 2-year high
July 6, 2017 / 1:57 AM / 5 months ago

GRAINS-Wheat prices drop 3 pct, edge away from 2-year high

    SYDNEY, July 6 (Reuters) - U.S. wheat fell 3 percent on
Thursday, snapping a six-day rally in which prices soared more
than 20 percent, though concerns over widespread damage across
key U.S. producing regions due to hot, dry weather kept the
grain near a two-year high.
    Corn fell more than 1.5 percent in its first daily slide in
eight sessions, while soybean prices edged lower.
    The most active wheat futures on the Chicago Board of Trade
 had dropped 2.9 percent to $5.43-3/4 a bushel by 0128 GMT.
They closed up 0.9 percent on Wednesday, when prices marked
their strongest since July 2015 at $5.74-1/2 a bushel.
    "I'm surprised by the extent of the rally and the market has
perhaps got a little bit overextended," said Phin Ziebel,
agribusiness economist at National Australia Bank.
    But traders said weather forecasts had put a floor under
prices.
    Temperatures are expected to reach 100 degrees Fahrenheit
(37.8 degrees Celsius) in the northern U.S. Plains by the
weekend, threatening wheat production.
    The most active corn futures declined 1.6 percent to
$3.97-1/2 a bushel, after closing up 1.2 percent in the previous
session.
    Analysts said the hot weather may stress crops that are
approaching pollination.
    The most active soybean futures fell 0.2 percent to
9.92-1/4 a bushel, having ended the last session up 1.4 percent.
    A U.S. Department of Agriculture report on Friday showed
that soybean stocks and acreage were below market expectations,
underpinning prices for the oilseed.
        
 Grains prices at  0128 GMT
 Contract      Last   Change   Pct chg  Two-day chg    MA 30  RSI 
 CBOT wheat  543.75   -16.25    -2.90%       -2.03%   473.97    88
 CBOT corn   397.50    -6.50    -1.61%       +2.32%   383.52    61
 CBOT soy    992.25    -2.00    -0.20%       +1.17%   940.14    80
 CBOT rice    11.91    $0.00    +0.00%       +0.76%   $11.58    66
 WTI crude    45.42    $0.29    +0.64%       -3.51%   $46.00    53
 Currencies                                                       
 Euro/dlr    $1.134  -$0.001    -0.11%       -0.02%               
 USD/AUD     0.7595    0.000    -0.07%       -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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