January 22, 2018 / 2:17 AM / 6 months ago

GRAINS-Soybean prices hit 5-wk high on Argentina weather worries

    SYDNEY, Jan 22 (Reuters) - U.S. soybean prices extended
gains into a sixth session on Monday to hit a five-week high,
buoyed by strong demand for U.S. supplies and by fears over dry
weather in key producer Argentina.
         
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board of
Trade were up 0.5 percent at $9.82-1/2 a bushel by 0143
GMT, after earlier touching their highest since Dec. 12 at $9.84
a bushel. Soybean prices closed up 0.4 percent on Friday.
    * The most active corn futures were up 0.4 percent at
$3.54 a bushel, having gained 0.3 percent in the previous
session.
    * The most active wheat futures were up 0.8 percent at
$4.26-3/4 a bushel, after closing Friday down 0.6 percent. 
    * Soybean prices were supported as concerns over persistent
dryness in Argentina stoked fears about harvest prospects in the
world's third-largest producer of the commodity.
    * The Buenos Aires Grain Exchange last week said it could
reduce its 2017/18 soybean planting area estimate further after
sowing delays caused by dry weather in northwestern Argentina.

    * The U.S. Department of Agriculture on Friday said weekly
export sales of soybeans totalled 1.528 million tonnes, topping
market forecasts that ranged from 800,000 to 1.4 million tonnes.
    * Brazil's 2017/18 soybean crop harvest is lagging last
year's pace and the long-term average for this time of the year,
which will result in a sharp reduction in the amount of soy that
will be available in the market by the end of January.

    * Weekly corn export sales of 1.891 million tonnes were well
above analyst estimates, while export sales of wheat were just
190,500 tonnes, below a range of market forecasts.
         
    MARKET NEWS  
    * The dollar sagged against its peers on Monday as a U.S.
government shutdown dented sentiment, although losses were
limited for now as investors took a wait-and-see stance on
developments in Washington.  
    * Oil prices climbed on Monday, pushed up by a drop in U.S.
drilling activity and by fighting in Syria between Turkish
forces and Kurdish fighters.  
    
    DATA AHEAD (GMT)
    1330  U.S.            National activity index           Dec
        
 Grains prices at  0142 GMT
 Contract      Last   Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat  426.00     3.25   +0.77%       +0.18%  424.42     54
 CBOT corn   354.00     1.50   +0.43%       +0.71%  350.34     66
 CBOT soy    982.50     5.25   +0.54%       +0.98%  972.09     72
 CBOT rice    12.11   -$0.10   -0.82%       -0.33%  $12.03     64
 WTI crude    63.47    $0.10   +0.16%       -0.75%  $60.33     64
 Currencies                                                      
 Euro/dlr    $1.223   $0.001   +0.07%       -0.07%               
 USD/AUD     0.7983   -0.001   -0.09%       -0.19%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  
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