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GRAINS-Wheat rises for 2nd day on short-covering, U.S. weather concerns
May 25, 2017 / 3:59 AM / 7 months ago

GRAINS-Wheat rises for 2nd day on short-covering, U.S. weather concerns

    * Wheat gains more ground, short-covering by funds supports
    * Excessive moisture in U.S. grain belt raises crop concerns

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 25 (Reuters) - Chicago wheat futures rose for
a second straight session on Thursday with short-covering by
funds and concerns over excessive moisture in the U.S. grain
growing areas underpinning the market.
    Corn gained more ground while soybeans rose after closing
largely unchanged in the previous session.
    The Chicago Board of Trade most-active wheat contract
rose 0.6 percent to $4.35 a bushel by 0332 GMT, having added 0.7
percent on Wednesday.
    "I think the wheat market has bottomed out at around $4.30,
funds are short on wheat and any short-covering will support
prices," said Ole Houe, an analyst with brokerage IKON
Commodities in Sydney.
    "Buyers are thinking prices are not going to get any
cheaper."
    Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Wednesday, traders said. They were small
net sellers of soybeans.
    Worrisome weather lent support, with excessive moisture in
the U.S. Plains and Midwest raising concerns about yield
prospects and grain quality for maturing winter wheat crop.
    Wheat gains were checked though by a slight improvement in
weekly winter wheat condition ratings.
    Soybeans climbed 0.2 percent to $9.50-1/2 a bushel,
after ending Wednesday little changed, and corn rose 0.4
percent to $3.72-3/4 a bushel, having gained 0.5 percent the day
before.
    The market awaits the USDA's first 2017 condition ratings
for corn, which the government expects to release in its next
weekly crop progress report on May 30.

 Grains prices at  0332 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  435.00  2.50    +0.58%   +0.17%       434.33  63
 CBOT corn   372.75  1.50    +0.40%   -0.60%       369.98  58
 CBOT soy    950.50  2.25    +0.24%   -0.63%       963.36  43
 CBOT rice   11.03   -$0.03  -0.27%   -0.27%       $10.23  70
 WTI crude   51.78   $0.42   +0.82%   +0.60%       $49.28  78
 Currencies                                                
 Euro/dlr    $1.124  $0.001  +0.05%   +0.34%               
 USD/AUD     0.7508  0.003   +0.44%   +0.66%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
      

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  

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