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GRAINS-Soybeans up for 2nd day on strong U.S. exports, Argentina dryness
December 16, 2016 / 3:38 AM / a year ago

GRAINS-Soybeans up for 2nd day on strong U.S. exports, Argentina dryness

* Soybeans extend gains on strong U.S. weekly export data
    * Concerns over dryness in Argentina underpin prices
    * Wheat struggles as strong dollar dampens U.S. export
outlook

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 16 (Reuters) - Chicago soybean futures rose
on Friday for a second consecutive session, with prices
underpinned by weekly data showing higher-than-expected U.S.
exports and dry weather in Argentina.
    Wheat was little changed after falling more than 2 percent
on Thursday with prices anchored by gains in the U.S. dollar
which reduces U.S. export prospects. Corn edged higher.
    The Chicago Board of Trade most-active soybean contract
 rose 0.7 percent to $10.35-3/4 a bushel by 0252 GMT, wheat
 was unchanged at $4.09-1/4 a bushel and corn gained
0.3 percent to $3.57-1/2 a bushel. 
    The U.S. Department of Agriculture on Thursday reported that
weekly soybean export sales for 2016/17 delivery rose to 2.008
million tonnes, up from 1.462 million a week ago and above trade
forecasts for 1.1-1.5 million tonnes. 
    The USDA also reported a flash sale of 132,000 tonnes of
soybeans to China.
    Meantime, concern is growing over dry weather in Argentina.
    "Argentina's forecast has turned a little drier overnight,"
said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "Parched soils in the south are still likely to get enough
rain to bring about some temporary relief next week. Not much
rain is expected in late December though, so the region could
quickly find itself drying down again."
    Soybeans are down 0.2 percent this week after gaining almost
1 percent a week before. Corn has given up about half a percent
this week and wheat has lost 1.6 percent.
    The rise in soybean prices was checked by data showing lower
U.S. domestic processing. The National Oilseed Processors
Association on Thursday said the monthly soybean crush fell in
November despite a record harvest. 
    The dollar advanced, on track for hefty gains for the week,
after scaling 14-year highs against the euro as well as a
broader basket of currencies on expectations of more U.S.
Federal Reserve interest rate hikes. 
    U.S. wheat has struggled to find business with cheaper
supplies from countries such as Russia, Ukraine and Australia.
Strength in the dollar will further increase the price of U.S.
wheat for importers holding other currencies.
    Elsewhere, soft wheat output in the European Union is
expected to rebound by 7 percent in 2017 after adverse weather
hammered crops this year. 
    Commodity funds were net sellers of CBOT wheat, corn and
soyoil futures contracts on Thursday. The funds were net buyers
of soybeans and soymeal. 
    
 Grains prices at  0252 GMT
 
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  409.25   0.00     +0.00%   -1.98%       418.98   66
 CBOT corn   357.50   1.00     +0.28%   -0.97%       355.83   64
 CBOT soy    1035.75  6.75     +0.66%   +0.75%       1018.32  54
 CBOT rice   9.49     $0.03    +0.26%   -3.01%       $9.71    36
 WTI crude   51.17    $0.27    +0.53%   -3.42%       $47.82   56
 Currencies                                                   
 Euro/dlr    $1.043   -$0.013  -1.23%   -1.75%                
 USD/AUD     0.7363   -0.009   -1.18%   -1.29%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
   
    

 (Reporting by Naveen Thukral; Editing by Kenneth Maxwell)

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