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GRAINS-Chicago wheat eases on ample supplies, firm dollar
November 13, 2017 / 3:18 AM / 11 days ago

GRAINS-Chicago wheat eases on ample supplies, firm dollar

    * Wheat falls after two days of gains, ample supplies weigh
    * Corn ticks lower as USDA's forecast of bumper crop weighs

 (Adds details, quotes)
    By Naveen Thukral
    Nov 13 (Reuters) - Chicago wheat futures lost ground on
Monday, falling after two days of gains as abundant global
supplies and a stronger dollar weighed on the market.
    Corn edged lower, falling for five out of seven sessions,
weighed down by a U.S. government estimate of
higher-than-expected production.
    The Chicago Board of Trade most-active wheat contract
gave up 0.4 percent to $4.30 a bushel by 0259 GMT, having closed
up 0.6 percent on Friday.
    Corn lost 0.2 percent at $3.43 a bushel and soybeans
 added 0.1 percent to $9.87-3/4 a bushel.
    Plentiful global wheat supplies and a large Russian harvest
have been putting downward pressure on prices.
    "Wheat markets broadly are now focussed on export sales from
the big producers," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
    "The U.S. needs to export substantial amounts of wheat so
prices remain vulnerable to further U.S. dollar strength."
    The dollar rose against its major peers on Monday as U.S.
yields spiked and as the pound stumbled, although the main
investor focus was still on a planned U.S. tax overhaul.
    A stronger dollar makes greenback-priced U.S. commodities
more expensive for importers holding other currencies.
    U.S. wheat is struggling with Black Sea exporters, who are 
winning a big chunk of the global export business.
    But India's decision to raise its wheat and peas import tax
will reduce the flow of wheat shipments from the main Black Sea
producers Ukraine and Russia and has already hit the Russian
market for peas, traders and analysts said.
    India doubled its import tax on wheat to 20 percent last
week, as the world's second biggest producer tries to rein in
imports to support local prices.
    For corn, a supply-demand report issued by the U.S.
Department of Agriculture last week raised estimates of the U.S.
corn yield to a record-high 175.4 bushels per acre, topping
trade expectations.
    Commodity funds were net buyers of CBOT corn, wheat, soybean
and soymeal futures contracts on Friday and net sellers of
soyoil, traders said.

 Grains prices at  0259 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  430.00  -1.50    -0.35%   +0.23%       432.21  51
 CBOT corn   343.00  -0.50    -0.15%   +0.44%       348.47  35
 CBOT soy    987.75  0.75     +0.08%   +0.28%       987.83  49
 CBOT rice   11.45   $0.03    +0.26%   +0.13%       $11.96  32
 WTI crude   56.83   $0.09    +0.16%   -0.59%       $53.04  72
 Currencies                                                 
 Euro/dlr    $1.165  -$0.001  -0.12%   +0.08%               
 USD/AUD     0.7650  -0.001   -0.14%   -0.36%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral
Editing by Richard Pullin)
  

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