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GRAINS-Wheat prices firm, soaring global supply caps gains
December 8, 2016 / 4:03 AM / a year ago

GRAINS-Wheat prices firm, soaring global supply caps gains

* Wheat rebounds from five-day low, corn edges lower
    * Soybean prices fall despite Argentina crop concerns

    By Colin Packham
    SYDNEY, Dec 8 (Reuters) - U.S. wheat futures edged up on
Thursday to move away from a five-day low touched in the
previous session, though ample global supply capped gains.
    Soybean prices fell 0.5 percent, dropping for the first time
in three sessions, while corn inched lower.
    The most active wheat futures on the Chicago Board of Trade
 had risen 0.31 percent to $4.02-1/4 a bushel by 0332 GMT.
They closed down 1.4 percent on Wednesday after touching their
lowest since Dec. 2 at $3.99-1/2 a bushel. 
    But wheat has been under pressure as major exporters report
bumper production.
    "Gloom about supply seems to be descending again," said
Tobin Gorey, director of agricultural strategy, Commonwealth
Bank of Australia.
    Canada's Statscan on Tuesday put the country's all-wheat
crop at 31.7 million tonnes, up 15 percent from last year and
exceeding the average trade expectation of 30.7 million tonnes.
 
    Australia, another major supplier, this week raised its
official forecast for 2016-17 wheat production to a record 32.64
million tonnes. 
   The most active soybean futures fell 0.45 percent to
$10.45-1/4 a bushel, having closed down 0.1 percent on
Wednesday. 
    The weakness in soybean markets comes despite concerns over
dry weather in Argentina and continued demand for U.S. supplies.
    The U.S. Department of Agriculture said on Wednesday that
private exporters in the last day had sold 466,000 tonnes of
U.S. soybeans to China and unknown destinations. 
    Traders are now awaiting the next USDA report on Friday.
    Analysts surveyed by Reuters on average expect the
government to lower its forecast for U.S. 2016/17 soybean ending
stocks and leave its figures for corn and wheat ending stocks
nearly unchanged. 
    The most active corn futures fell 0.21 percent to
$3.57-1/4 a bushel, having closed down 0.7 percent in the
previous session.
    
 Grains prices at  0330 GMT
 Contract        Last   Change     Pct  Two-day chg    MA 30  RSI
                                   chg                        
 CBOT wheat    402.25     1.25  +0.31%       -1.11%   422.26   42
 CBOT corn     357.25    -0.75  -0.21%       -0.90%   356.48   59
 CBOT soy     1044.25    -4.75  -0.45%       -0.33%  1014.56   61
 CBOT rice       9.90   -$0.03  -0.30%       -0.60%    $9.76   60
 WTI crude      49.88    $0.11  +0.22%       -2.06%   $47.05   55
 Currencies                                                      
 Euro/dlr      $1.078   $0.002  +0.22%       +0.54%              
 USD/AUD       0.7494    0.002  +0.20%       +0.46%              
 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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