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GRAINS-Soybeans face biggest weekly loss in 1-1/2 mths as Brazil currency weakens
May 19, 2017 / 3:23 AM / 7 months ago

GRAINS-Soybeans face biggest weekly loss in 1-1/2 mths as Brazil currency weakens

    * Soybeans fall for 2nd week, weak Brazilian real weighs
    * U.S. corn faces weekly loss, wet weather limits decline

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, May 19 (Reuters) - Chicago soybeans on Friday
were on track for their biggest weekly decline since late March,
with a steep fall in Brazil's currency encouraging farmers there
to boost sales of this year's record crop.
    Corn faced a weekly decline after closing almost unchanged
last week, although losses were limited by concerns over
excessive moisture in parts of the U.S. Midwest. 
    The Chicago Board of Trade most-active soybean contract
 has given up 1.4 percent this week, the biggest weekly
decline since the end of March.
    Corn is down almost 1 percent, the first weekly slide
in a month, and wheat has lost about 1 percent, taking
two-week losses to about 3.2 percent.
    On Friday, all three markets were trading around half a
percent higher.
    "The Brazilian real's fall precipitated the fall (in prices)
as it directly cuts the competitiveness of U.S. soybeans against
those from Brazil," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia. 
    "Brazilian farmers have reportedly jumped at the chance to
sell their soybeans at somewhat higher prices."    
    Soybeans were under pressure as the Brazilian real
slumped following corruption allegations against the country's
President Michael Temer.
    A weaker real may encourage farmers to accelerate sales to
earn more money for their crop.
    Brazil just completed its largest-ever soy harvest,
estimated by the U.S. Department of Agriculture at 111.6 million
tonnes. But farmers had sold only about half of it by early May,
compared with the five-year average of 65 percent.
    On Thursday, farmers were selling beans that had been locked
up in storage bins for weeks because the currency's strength had
weighed on prices. The sales will likely shift the attention of
global soybean importers away from the United States.

    There was some supportive news for the soybean market from
    Rains expected in the coming week in Argentina could delay
soybean harvesting in some areas and threaten to reduce yields,
the Buenos Aires Grains Exchange said in a report on Thursday.
    The USDA reported export sales of U.S. wheat in the latest
reporting week at 640,600 tonnes, including old and new
marketing years combined, topping a range of trade expectations.

 Grains prices at  0252 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  428.00  2.25    +0.53%   +0.23%       435.33  51
 CBOT corn   367.50  1.50    +0.41%   -1.08%       369.63  53
 CBOT soy    950.00  5.25    +0.56%   -2.64%       963.23  42
 CBOT rice   10.79   -$0.09  -0.87%   -1.10%       $10.19  72
 WTI crude   49.78   $0.43   +0.87%   +1.45%       $49.47  66
 Euro/dlr    $1.110  $0.000  -0.01%   -0.52%               
 USD/AUD     0.7418  0.000   +0.03%   -0.17%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Joseph Radford)

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