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GRAINS-Soybean futures firm after weekly loss; Argentine rains miss key area
December 27, 2016 / 3:18 AM / a year ago

GRAINS-Soybean futures firm after weekly loss; Argentine rains miss key area

* Soybean edged higher on concerns over Argentina drought
    * Gains capped by plentiful global soybean, grain supplies

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 27 (Reuters) - Chicago soybean futures ticked
higher on Tuesday after suffering deep losses last week, with
the market underpinned by concerns over poor rainfall affecting
in Argentina's key crop areas.
    Wheat jumped around 1 percent on expectations of strong
demand from India, where two years of lower output has depleted
    "Grains and soybeans have opened higher as it is mainly
short-covering after the Christmas holiday break," said Kaname
Gokon at brokerage Okato Shoji in Tokyo.
    "The drought in Argentina is becoming an issue. If there is
crop damage, we could see some more gains."
    The Chicago Board of Trade most-active soybean contract
 rose 0.1 percent to $9.90 a bushel by 0240 GMT and wheat
 added 1 percent to $3.97-1/4 a bushel and corn 
gained 0.8 percent to $3.48-1/2 a bushel.
    Heavy rains that pelted parts of Argentina over the weekend
did not reach the southeastern part of the bread-basket province
of Buenos Aires, where dryness is threatening to dent soybean
production, local farm weather experts said on Monday.
    Argentina aims to increase farm production under President
Mauricio Macri, who has implemented a slew of market-friendly
reforms since taking office a year ago. But the weather has not
cooperated with farmers in some key growing areas.
    The global wheat market, which has faced pressure from
plentiful supplies, is finding a floor with India - the world's
second-largest consumer - expected to import larger volumes.
    India's wheat stocks in April next year, when the new season
begins, are likely to be at their lowest levels in more than a
decade after two successive droughts drained the soil of
moisture and cut output. 
    Lower stocks will force India to import about 6 million
tonnes of wheat in the fiscal years ending March 2017 and March
2018 to curb local prices, which have leapt 40 percent since the
current year began in April, traders and industry experts said.
    Commodity funds were net sellers of Chicago Board of Trade
soybean, soyoil, soymeal, corn and wheat futures contracts on
 Grains prices at  0240 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  397.25  3.75     +0.95%   -0.56%       412.81   48
 CBOT corn   348.50  2.75     +0.80%   +0.36%       354.36   47
 CBOT soy    990.00  1.00     +0.10%   -1.66%       1020.62  29
 CBOT rice   9.44    -$0.02   -0.21%   +0.80%       $9.63    29
 WTI crude   53.10   $0.08    +0.15%   +0.28%       $49.67   69
 Euro/dlr    $1.043  -$0.002  -0.19%   -0.20%                
 USD/AUD     0.7177  -0.001   -0.10%   -0.04%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Kenneth Maxwell and
Christian Schmollinger)

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