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GRAINS-Soybeans ease for second day on high supply forecast, wheat firms
May 11, 2017 / 4:07 AM / in 6 months

GRAINS-Soybeans ease for second day on high supply forecast, wheat firms

    * Soybeans lose ground as USDA projects higher supplies
    * Corn eases after rally, tighter supply outlook limits

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 11 (Reuters) - Chicago soybean futures slid
for a second session on Thursday under pressure from a key U.S.
government report forecasting higher supplies. 
    Wheat was up for a second day on a lower U.S. production
outlook while corn eased, retreating from last session's near
one-week high reached on forecasts from the U.S. Department of
Agriculture (USDA) for smaller-than-expected global supplies.
    The Chicago Board of Trade most-active soybean contract
 fell 0.3 percent to $9.67-3/4 a bushel by 0337 GMT, having
closed down 0.4 percent on Wednesday.
    Corn declined 0.1 percent to $3.73-1/4 a bushel,
having climbed 2 percent in the previous session to its highest
since May 4 and wheat gained 0.1 percent to $4.32-1/4 a
    U.S. soybean ending stocks were seen rising to an 11-year
high in the 2017/18 crop year following another bumper harvest,
the USDA said on Wednesday.
    Corn stocks were seen declining slightly but remaining
plentiful. Wheat stocks were seen falling due to production
dropping to its lowest level in 11 years.
    The agency pegged 2017/18 soybean ending stocks at 480
million bushels. If realised, it would be the biggest since the
2006/07 crop year and the third-biggest ever.
    The USDA pegged world corn ending stocks at 195.27 million
tonnes. The figure was down from 223.90 million expected at the
end of 2016/17 and below an average of analyst estimates for
209.72 million.
    The USDA's forecasts of domestic corn ending stocks for both
2016/17 and 2017/18 also came in below the average trade
    "The USDA report showed that there will be lot less of
grains around next year. We are in for a lot more volatility as
there is a debate around whether the world will build stocks or
not," said Ole Houe, an analyst with brokerage IKON Commodities
in Sydney.
    "Soybeans have been too high for too long. The market should
be more close to $9 a bushel."
    The USDA pegged the 2017/18 wheat harvest at 1.820 billion
bushels, down from 2.310 billion bushels a year earlier. That
would mark the smallest U.S. wheat harvest since the 2006/07
marketing year, when farmers produced 1.808 billion bushels.
    Production of hard red winter wheat, the largest wheat crop,
was seen falling to 737 million bushels from 1.082 billion
bushels a year ago. Analysts had been expecting total wheat
production of 1.859 billion bushels.
 Grains prices at  0337 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  432.25  0.50    +0.12%   +0.64%       438.44  51
 CBOT corn   373.25  -0.50   -0.13%   +1.84%       369.89  54
 CBOT soy    967.75  -2.50   -0.26%   -0.64%       961.91  53
 CBOT rice   10.31   $0.03   +0.24%   +4.67%       $10.27  75
 WTI crude   47.52   $0.19   +0.40%   +3.57%       $49.85  48
 Euro/dlr    $1.087  $0.001  +0.07%   +0.02%               
 USD/AUD     0.7344  -0.002  -0.26%   +0.00%               
 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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