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GRAINS-Soybean prices hold near 4-mth high on Argentina weather worries
December 6, 2017 / 2:02 AM / 5 days ago

GRAINS-Soybean prices hold near 4-mth high on Argentina weather worries

MANILA, Dec 6 (Reuters) - U.S. soybean futures stayed above $10 a bushel in early trading on Wednesday, near their highest level since July, amid lingering worries over dry weather in Argentina, the world’s third-biggest producer.

FUNDAMENTALS

* Soybeans for January delivery on the Chicago Board of Trade were up 0.3 percent at $10.11 a bushel by 0148 GMT. That is just a tad off Tuesday’s peak of $10.15, which was the highest since July 28.

* “The market’s worries about crops in Argentina have intensified over the past day or so. Weather forecasters still expect hot and dry conditions to persist into mid-December,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

* Gorey said that while weather models suggest rains happening beyond mid-December, “weather forecasters though still have little confidence the rain event will be realised”. He added that “Argentina’s soybean yields are at risk”.

* The uncertainty surrounding Argentine crop prospects fueled hopes that China, the world’s biggest soybean importer, might start booking more U.S. soy cargoes. Sales of U.S. soybeans in the 2017-18 marketing year that started Sept. 1 have lagged the pace set at the same time last year.

* CBOT wheat and corn were little changed at $4.32-1/2 and $3.53-3/4 per bushel respectively.

* Egypt, the world’s largest wheat buyer, has 3.4 million tonnes of wheat reserves, enough for more than four-and-a-half months, the supply minister said.

* Private analytics firm Informa Economics cut its estimate of Brazil’s 2017/18 soybean and corn crops, trade sources said. Informa put 2017/18 Brazil soybean production at 110 million tonnes, down 1 million from its previous estimate and put the 2017/18 all-corn production at 89 million tonnes, down 3 million from a previous forecast.

MARKETS NEWS

* Asian stocks slipped, pressured by losses on Wall Street as the technology sector stuttered yet again after a brief rebound, while the dollar sagged on lower long-term U.S. yields.

DATA AHEAD (GMT)

0700 Germany Industrial orders Oct

1315 U.S. ADP national employment Nov

Reporting by Manolo Serapio Jr.; Editing by Joseph Radford

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