December 22, 2017 / 2:02 AM / a month ago

GRAINS-Soybean prices drop to 3-mth low as S.American rains boost crops

    SINGAPORE, Dec 22 (Reuters) - Chicago soybean futures on
Friday fell for a seventh session, hitting a three-month low as
improved weather across Brazil and Argentina boosted
expectations for another bumper harvest in South America.
    Wheat prices were little changed after rallying for the past
two sessions on the back of higher demand for U.S. shipments.
    
    FUNDAMENTALS
    * The soybean market is being dragged down by rains in
Argentina's drought-hit producing regions and forecasts of
all-time high output in Brazil.
    * Higher soybean production in South America is expected to
increase competition in the global market with U.S. exports
already running behind last year's pace.
    * The Chicago Board of Trade's most-active soybean contract
 is on track for a third week of decline, down more than 2
percent this week. Corn is up about 1 percent this week
after falling for the past two weeks, while wheat has
risen 2.2 percent this week in its biggest weekly gain since
mid-September.  
    * More stringent specifications for U.S. soybean imports in
China, the top global buyer, are adding to the bearish headwinds
for soybeans. 
    * U.S. shipments to China as of Jan. 1 will be required to
have reduced foreign material content to expedite unloadings,
the U.S. Department of Agriculture said on Wednesday.

    * Higher-than-expected demand for U.S. wheat is supporting
prices.
    * The USDA on Thursday said weekly U.S. export sales of
796,300 tonnes of wheat and 1.6 million tonnes of corn were
higher than analyst expectations, while sales of 1.7 million
tonnes of soybeans were at the high-end of estimates.
    * U.S. export sales of a certain type of wheat were the
biggest in more than three years, the U.S. Department of
Agriculture said on Thursday, as low prices prompted livestock
producers in Asia to buy the grain as animal feed.
    * Soft red winter wheat, the variety traded on the CBOT, is
usually used to make flour for cookies and crackers. However,
prices for lower-grade supplies declined enough to make it a
bargain for poultry and livestock farmers, U.S. and European
export traders said.
    * Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Thursday and net sellers of soybeans,
soyoil and soymeal, traders said.    
    
    MARKET NEWS
    * Asian stocks edged up on Friday on new data pointing to
steady growth in the U.S. economy, while the euro slipped after
a vote in Catalonia favoured separatists wanting to break away
from Spain.
    
    DATA AHEAD (GMT)
0930   U.K.    GDP      Q3
    
 Grains prices at  0140 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  427.00  0.00     +0.00%   +1.79%       431.38  74
 CBOT corn   351.00  -0.25    -0.07%   +1.01%       352.84  75
 CBOT soy    946.50  -2.25    -0.24%   -0.99%       982.19  19
 CBOT rice   11.86   -$0.14   -1.13%   +1.24%       $12.05  50
 WTI crude   58.16   -$0.20   -0.34%   +0.12%       $57.19  60
 Currencies                                                 
 Euro/dlr    $1.184  -$0.004  -0.30%   -0.27%               
 USD/AUD     0.7710  0.001    +0.13%   +0.57%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below