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GRAINS-Wheat falls but losses contained by output worries
March 9, 2016 / 4:17 AM / 2 years ago

GRAINS-Wheat falls but losses contained by output worries

* Wheat, corn, soybeans all down 1st time in 6 sessions
    * Pour rainfall could hit U.S. wheat output
    * EC forecasts higher soft wheat stocks for 2016/17
    * Latest USDA supply and demand report due later

    By Colin Packham
    SYDNEY, March 9 (Reuters) - U.S. wheat futures fell for the
first time in six sessions on Wednesday, edging back from a near
three-week high touched early in the week, though losses were
limited by worries over the threat of not enough rain in the
United States.
    Corn futures dropped back from a two-week high touched in
the previous session, and soybeans fell as well. Both of those
grains were also down for the first session in six.
    The most-active wheat contract on the Chicago Board of
Trade (CBOT) fell 0.32 percent to $4.63-3/4 a bushel after
closing up 0.54 percent on Tuesday. Wheat hit a near three-week
high of $4.68-1/2 on Monday.
    Analysts said ample global supplies weighed on wheat, though
losses were curbed by concerns over U.S. output being curtailed
by dry weather.   
    "Weather forecasters expect the crop to get scattered rain
over the next couple of days, but the amounts are unlikely to be
enough to take the region off the watch list," said Tobin Gorey,
director of agricultural strategy, Commonwealth Bank of
    The European Commission on Tuesday forecast that EU soft
wheat stocks would rise further in 2016/17 despite an expected
drop in production, adding to inventories it already sees
reaching a seven-year high in the current season. 
    The most active corn futures contract fell 0.42
percent to $3.59 a bushel after closing up 0.42 percent in the
previous session when prices hit a high of $3.62-1/2 a bushel -
the highest since Feb. 25.
    The most active soybeans contact fell 0.28 percent to
$8.82 a bushel, having firmed 0.32 percent on Tuesday.
    Analysts said the U.S. Department of Agriculture (USDA)
supply and demand report later on Wednesday would drive prices.
    Traders and analysts expect the USDA to further increase its
estimates for global corn and soybean inventories from February.
     The USDA said on Tuesday private exporters struck deals to
sell 110,000 metric tons of U.S. soybeans to top importer China
for delivery during the 2016/17 marketing year, which began on
Sept. 1. Exporters also reported sales of 140,000 metric tons of
U.S. soybeans for delivery to unknown destinations. 

  Grains prices at  0318 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     463.75    -1.50  -0.32%    +0.22%     467.83   63
  CBOT corn      359.00    -1.50  -0.42%    +0.00%     366.37   51
  CBOT soy       882.00    -2.50  -0.28%    +0.03%     877.37   66
  CBOT rice      $10.55    $0.01  +0.09%    -1.45%     $11.05   37
  WTI crude      $36.53    $0.03  +0.08%    -3.61%     $32.07   66
  Euro/dlr       $1.098  -$0.003  -0.31%    -0.34%
  USD/AUD         0.742   -0.001  -0.20%    -0.58%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 (Reporting by Colin Packham; Editing by Tom Hogue)

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