December 15, 2016 / 2:39 AM / a year ago

GRAINS-Soybeans fall to 3-week low as rains set for Argentina

SYDNEY, Dec 15 (Reuters) - U.S. soybeans fell 0.5 percent on
Thursday to a three-week low as crop-friendly weather in
Argentina eased the prospect of production losses and tighter
supply.
         
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade dropped 0.5 percent to $10.18-3/4 a bushel, near the
session low of $10.18-1/2 a bushel - the lowest since November
23. Soybeans closed down 0.4 percent on Wednesday.
    * The most active corn futures fell 0.41 percent to
$3.60-1/2 a bushel, having gained 0.28 percent in the previous
session.
    * The most active wheat futures slipped 0.36 percent
to $4.16-1/2 a bushel, having closed up 0.1 percent on
Wednesday. 
    * Soybean prices came under pressure from more favourable
weather for production in Argentina.
    * The Argentine rain outlook boosted crop prospects from the
key exporter, denting prospects for U.S. exporters, already
under pressure from high Brazilian supplies.
    * Brazil's Abiove on Wednesday forecast that the country
will produce 101.7 million tonnes of soybeans in the 2016/17
crop year, with 58 million tonnes of the crop expected to be
exported. 
    * The National Oilseed Processors Association (NOPA), the
largest U.S. trade group for the industry, is expected to report
its members crushed 162.568 million bushels of soybeans in
November, up 4.1 percent from a year earlier. That would make
the month the busiest November ever, and the seventh-largest
monthly crush on record. 
         
    MARKET NEWS  
    * The dollar hovered near a 14-year peak against a basket of
major currencies on Thursday, receiving a major boost after the
Federal Reserve increased the number of projected interest rate
hikes for 2017.  
    * Oil prices dropped on Thursday as a hike in U.S. interest
rates prompted a flood of money away from commodities and into
U.S. bonds and the dollar.  
    * U.S. stocks fell the most in two months on Wednesday after
the Fed news signalled hikes could come next year at a faster
pace than some expected.  
    
    DATA/EVENT AHEAD (GMT) 
0800  France         Markit manufacturing flash PMI      Dec 
0830  Germany        Markit manufacturing flash PMI      Dec 
0900  Euro zone      Markit manufacturing flash PMI      Dec 
0930  Britain        Retail sales                        Nov 
1200  Bank of England interest rate decision 
1330  U.S.           Consumer prices                     Nov 
1330  U.S.           Current account                     Q3 
1330  U.S.           New York Fed manufacturing          Dec 
1330  U.S.           Weekly jobless claims 
1330  U.S.           Philly Fed business index           Dec 
1500  U.S.           NAHB housing market index           Dec 
        
 Grains prices at  0158 GMT
 Contract          Last   Change  Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat      416.50    -1.50   -0.36%       -0.18%  419.96    46
 CBOT corn       360.50    -1.50   -0.41%       +0.00%  355.77    55
 CBOT soy       1018.75    -5.00   -0.49%       -1.19%  1016.5    39
                                                             1  
 CBOT rice         9.70   -$0.01   -0.10%       -1.62%   $9.71    44
 WTI crude        50.86   -$0.18   -0.35%       -3.73%  $47.62    54
 Currencies                                                         
 Euro/dlr        $1.051  -$0.011   -1.08%       -1.17%              
 USD/AUD         0.7422   -0.008   -1.01%       -0.99%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Kenneth Maxwell)

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