May 26, 2017 / 3:40 AM / 6 months ago

GRAINS-Soybeans slide to over 6-week low, face 3rd weekly fall

    * Crude oil decline, ample supplies weigh on soybeans
    * China's soy crush margins drop to weakest since Sept 2014
    * Corn, wheat set to end the week lower

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 26 (Reuters) - Chicago soybean futures
dropped to a more than six-week low on Friday and were poised
for a third weekly fall as a deep fall in crude oil prices and
plentiful world supplies put pressure on the oilseed.
    Corn and wheat were also set for weekly drop after rising
marginally last week.
    The Chicago Board Of Trade most-active soybean contract
 has declined 1.8 percent so far this week, the biggest
weekly loss in two months. Soybeans hit a low of $9.36 a bushel
on Friday, the weakest since April 11.
    Corn has shed about 1 percent this week, the biggest
weekly fall since April 21, and wheat has lost 1 percent
for the week after closing 0.6 percent higher last week.
    Soyoil made from soybeans is a feedstock for making
biodiesel and demand for the alternative fuel eases when oil
prices decline.
    Oil markets remained weak on Friday after tumbling in the
previous session when OPEC and allied producers extended output
cuts but disappointed investors betting on longer or larger
supply curbs. 
    A record large output in South America is adding pressure on
prices.
    "For many players the breakdown looks like the market
finally succumbing to the addition of huge South American
soybean crops to the market," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
    "Only persistently strong U.S. exports, which now look to be
slowing, had forestalled the decline."
    There could be a slowdown in soybean imports by China, the
world's biggest buyer, as crushing margins fall. 
    China's crushing margins for soybeans fell to the weakest
since September 2014 this week as soymeal stocks rose to their
highest since mid-2012 amid sluggish end-user demand, pulling
down prices for the livestock feed.
    Soybean processors in the Shandong province, a key crushing
hub in the country's east, are losing 292 yuan a tonne
JCI-SBMG-SHDNI.
    The U.S. Agriculture Department reported weekly export sales
of U.S. corn at 457,700 tonnes (old and new crop years
combined), below a range of trade expectations.
    Still, the International Grains Council raised its forecast
for global grains consumption for 2017/18 on Thursday,
signalling a bigger drawdown of world stocks than previously
expected.
    The IGC, in its monthly report, revised its global grains
consumption estimate for 2017/18 up by 7 million tonnes to 2.086
billion tonnes, just below the 2.087 billion forecast for
2016/17.
    
 Grains prices at  0304 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  430.75  0.00     +0.00%   -0.40%       433.08  55
 CBOT corn   369.00  -0.25    -0.07%   -0.61%       369.45  53
 CBOT soy    936.50  -3.00    -0.32%   -1.24%       961.68  33
 CBOT rice   10.86   -$0.07   -0.64%   -1.76%       $10.26  60
 WTI crude   48.77   -$0.13   -0.27%   -5.04%       $49.03  42
 Currencies                                                 
 Euro/dlr    $1.120  -$0.001  -0.10%   -0.17%               
 USD/AUD     0.7429  -0.002   -0.31%   -0.97%               
 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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