November 12, 2018 / 3:07 AM / a year ago

GRAINS-Wheat rebounds from 1-week low, stronger dollar caps gains

    * Wheat rises for 1st time in four sessions on
    * Higher demand for U.S. wheat seen early next year
    * Stronger dollar capping gains in wheat, adding pressure on

 (Adds quote, updates prices)
    By Naveen Thukral
    SINGAPORE, Nov 12 (Reuters) - Chicago wheat futures edged
higher on Monday, snapping three sessions of losses, on
expectations of higher demand for U.S. supplies although a
stronger dollar kept a lid on the market.
    Corn slid for a second session while soybeans were little
changed with focus on U.S.-China trade talks later this month. 
    The most-active wheat contract on the Chicago Board Of Trade
 gained 0.6 percent to $5.04-3/4 a bushel, as of 0244 GMT,
having closed down 1.1 percent on Friday when prices slid to
$5.01 a bushel - the lowest since Nov. 1.
    Corn slipped 0.1 percent to $3.69-1/4 a bushel, having
closed down 1 percent in the previous session and soybeans
were little changed at $8.86-1/2 a bushel, having firmed 0.9
percent on Friday.
    The dollar built on last week's gains and rose towards a
16-month high on Monday as traders expect the U.S. Federal
Reserve to keep tightening monetary policy.      
    A stronger dollar makes the greenback-priced products such
as U.S. grains more expensive for importers holding other
    The wheat market has been under pressure on concerns that
U.S. exports are falling short of the U.S. Department of
Agriculture's (USDA) forecast as Russia, the world's top
supplier, continues to sell grain at competitive prices.
    But the market expects U.S. exports to pick up next year
after Russia and the other exporters in the Black Sea region run
out of surpluses.
    "Wheat is rebounding as we expect strong demand for U.S.
supplies in the first half of next year as the Black Sea region
and Australia will have less to sell. This is likely to support
wheat prices," said Ole Houe, director of advisory services at
brokerage IKON Commodities in Sydney.
    For soybeans, there are prospects for progress in the U.S.
trade talks with top global soybean buyer China. 
    U.S. President Donald Trump is due to meet with China
President Xi Jinping in Buenos Aires, Argentina, at the end of
November on the sidelines of a Group of 20 summit to discuss a
possible way out of their deepening trade war.
    Large speculators trimmed their net short position in CBOT
corn futures in the week to Nov. 6, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and trimmed their net short
position in soybeans.
 Grains prices at  0244 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  504.75  2.75     +0.55%   -0.59%       510.31  46
 CBOT corn   369.25  -0.50    -0.14%   -1.14%       369.06  48
 CBOT soy    886.50  -0.25    -0.03%   +0.85%       875.69  65
 CBOT rice   10.62   $0.00    +0.00%   -1.07%       $10.86  44
 WTI crude   60.73   $0.54    +0.90%   +0.10%       $68.25  
 Euro/dlr    $1.133  -$0.001  -0.06%   -0.31%               
 USD/AUD     0.7232  0.001    +0.11%   -0.33%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Amrutha Gayathri)
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