January 16, 2018 / 2:28 AM / a month ago

CORRECTED-GRAINS-Wheat falls, lingers near one-month low on USDA forecast

 (Corrects two-day percentage changes in table)
    SYDNEY, Jan 16 (Reuters) - U.S. wheat futures edged lower on
Tuesday, adding to a steep fall after the U.S. Department of
Agriculture forecast higher than expected winter output and
pushing prices to a near one-month low.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board Of
Trade were down 0.1 percent at $4.20 a bushel by 0126 GMT,
having closed down 2.9 percent on Friday when prices hit a low
of $4.18-3/4 a bushel - the lowest since Dec. 20, 2017. The
market was closed on Monday for a U.S. holiday.
    * The USDA estimated 2018 winter wheat plantings at 32.608
million acres, the smallest since 1909 but above analysts'
expectations for 30.100 million to 32.000 million.

    * The most active soybean futures were up 0.4 percent
at $9.64-3/4 a bushel, having earlier hit a high of $9.67-3/4 a
bushel - the highest since Jan. 9. Soybeans rose 1.1 percent on
Friday.
    * The most active corn futures rose 0.6 percent to
$3.48-1/4 a bushel, having closed down 0.7 percent in the
previous session.
    * The USDA raised its estimate for U.S. corn production due
to record-large yields and trimmed its estimate for the U.S.
soybean harvest, even as that crop remained the biggest ever.
         
    MARKET NEWS  
    * The euro briefly extended gains and German benchmark bond
yields hit the day's high after European Central Bank
rate-setter Ardo Hansson said the central bank could end its
bond purchase scheme in one go after September if the economy
and inflation develop as expected.  
    * Oil hovered near a three-year high above $70 a barrel on
Monday on signs that production cuts by OPEC and Russia are
tightening supplies, although analysts warned of a "red flag"
due to surging U.S. production.  
    * Wall Street continued its rally on Friday with record
closing highs as the fourth-quarter earnings season kicked off
with solid results from banks and robust retail sales drove
investor optimism about economic growth. 
    * Chinese imports of soybeans jumped to the third-highest
volume on record in December, according to customs data, boosted
by strong demand in the run-up to next month's Lunar New Year
holiday and healthy crushing margins. 
    
    DATA AHEAD (GMT)
0700  Germany           Wholesale price index              Dec
0930  UK                Consumer prices                    Dec
1330  US                New York Fed manufacturing         Jan
        
 Grains prices at  0136 GMT
 Contract      Last  Change   Pct chg  Two-day chg    MA 30   RSI 
 CBOT wheat  420.00   -0.50    -0.12%      -3.06%    411.92     36
 CBOT corn   348.25    2.00    +0.58%      -0.01%    355.28     45
 CBOT soy    964.75    4.25    +0.44%       1.55%   1023.69     59
 CBOT rice    11.97   $0.16    +1.35%       3.91%     $9.86     65
 WTI crude    64.51   $0.21    +0.33%       1.11%    $52.76     86
 Currencies                                                       
 Euro/dlr    $1.226  $0.166                                       
 USD/AUD     0.7954   0.048                                       
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
    

 (Reporting by Colin Packham; editing by Richard Pullin)
  
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