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GRAINS-Soybeans drop to 3-week low on Argentina rain forecast, corn falls
December 15, 2016 / 4:19 AM / a year ago

GRAINS-Soybeans drop to 3-week low on Argentina rain forecast, corn falls

* Soybeans fall for 4th day on outlook for Argentina rains
    * Corn, wheat also down as stronger dollar adds pressure

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 15 (Reuters) - Chicago soybeans slid for a
fourth straight session on Thursday, hitting a three-week low,
as forecasts of rains in Argentina's crop-belt eased the
prospects of production losses.
    Corn slid, snapping four sessions of gains, while wheat lost
ground as a stronger U.S. dollar weighed on agricultural
    The Chicago Board Of Trade most-active soybean contract
 was down 0.1 percent to $10.23 a bushel by 0341 GMT, after
falling to a low of $10.18-1/2 a bushel, the weakest since Nov.
    Corn fell 0.2 percent to $3.61-1/4 a bushel and wheat
 slipped 0.1 percent to $4.17-1/2 a bushel.
    "There is outlook for rains in Argentina in the near term
which is driving the soybean market," said Rajesh Singla, head
of agriculture research at Societe Generale.
    "Brazil is expected to produce a record crop and we might
even increase our estimates for Brazil's soybean production as
the weather has been really beneficial for the crop."
    Soybean prices came under pressure from more favourable
weather for production in Argentina, the world's third-largest
soybean exporter.
    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, the country's soybean industry group, 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. 
    There was additional pressure stemming from a stronger
dollar which makes commodities priced in the greenback expensive
for foreign buyers holding other currencies.
    The dollar rose to a 14-year peak against a basket of major
currencies after the Federal Reserve boosted the number of
projected interest rate hikes for 2017, rejuvenating the
month-long Trump rally and knocking emerging market currencies.
    Commodity funds were net buyers of CBOT wheat, corn and
soyoil futures contracts on Wednesday, traders said. The funds
were net sellers of soybeans and soymeal. 

 Grains prices at  0341 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  417.50   -0.50    -0.12%   +0.06%       419.99   46
 CBOT corn   361.25   -0.75    -0.21%   +0.21%       355.79   55
 CBOT soy    1023.00  -0.75    -0.07%   -0.78%       1016.65  42
 CBOT rice   9.69     -$0.02   -0.15%   -1.67%       $9.71    44
 WTI crude   50.95    -$0.09   -0.18%   -3.56%       $47.62   55
 Euro/dlr    $1.051   -$0.005  -0.50%   -1.03%                
 USD/AUD     0.7417   -0.003   -0.46%   -0.56%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Christian

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