January 12, 2018 / 3:52 AM / 5 months ago

CORRECTED-GRAINS-Soybeans face biggest weekly decline in month as supply glut weighs

 (Corrects third bullet and 7th paragraph to say China's Dec soy
imports hit the third highest on record, not the second-highest)
    * Soybeans down more than 2 pct this week, biggest since
mid-Dec
    * New forecast for Brazilian soybean crop see record
production
    * China soybean imports hit third-highest on record in
December

    By Naveen Thukral
    SINGAPORE, Jan 12 (Reuters) - Chicago soybean futures were
little changed on Friday with the market set for its biggest
weekly decline since mid-December on pressure from large U.S.
supplies and forecasts of a near-record Brazilian crop.
    Wheat is on track for a fourth consecutive week of gains on
expectations that the U.S. Department of Agriculture will lower
its estimates for planted area in a report due later in the day.
    The most-active soybean contract on the Chicago Board Of
Trade is down more than 2 percent this week, the biggest
weekly drop in a month.
    Wheat is up about half a percent this week, having
risen 3.6 percent in four weeks of positive moves and corn
is down 0.7 percent, the biggest weekly fall in a month.
    "Brazilian crop is looking good. There is dryness in
Argentina but that will not make a huge difference as there are
plenty of supplies," said Phin Ziebell, agribusiness economist
at National Australia Bank.
    "Chinese demand is pretty strong, the December imports are
big but right now the market is influenced by production, so it
a supply side of story."
    Chinese imports of soybeans jumped to the third-highest
volume on record in December, according to Reuters calculations
based on customs data, boosted by strong demand in the run-up to
next month's Lunar New Year holiday.
    Agroconsult on Thursday said Brazil should harvest 114.1
million tonnes of soybeans in the 2017/18 crop season, which
would match an all-time record set in 2016/17. The consultancy
in November forecast a 111-million-tonne harvest.
    But Argentine farmers will harvest 52 million tonnes of
soybeans in the 2017/18 season, the Rosario grains exchange said
in a report late on Wednesday, citing drought as its reason for
cutting a previous forecast of 54.5 million tonnes.
    Due to weather-related delays in planting, the exchange cut
its estimate of 17/18 soybean area to 18.5 million hectares from
18.8 million hectares previously.
    Analysts expect the USDA crop data to show smaller U.S.
winter wheat plantings and a decline in U.S. corn ending stocks.

    Weekly U.S. soybean export sales of 607,400 tonnes and corn
sales of 437,800 tonnes were both within analyst estimates.

    U.S. wheat exports dropped to 71,500 tonnes, a
marketing-season low and below estimates for 250,000 to 450,000
tonnes.
    Commodity funds were net sellers of CBOT soybean, soymeal,
soyoil and corn futures contracts on Thursday and net buyers of
wheat, traders said.
    
 Grains prices at 0327 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  433.50  0.25    +0.06%   -0.17%       426.61  58
 CBOT corn   348.75  0.00    +0.00%   -0.07%       350.93  40
 CBOT soy    950.00  0.00    +0.00%   -0.52%       977.75  27
 CBOT rice   11.75   $0.02   +0.17%   -1.30%       $12.10  34
 WTI crude   63.63   -$0.17  -0.27%   +0.09%       $59.25  78
 Currencies                                                
 Euro/dlr    $1.205  $0.002  +0.13%   +0.85%               
 USD/AUD     0.7878  -0.001  -0.15%   +0.46%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
        

 (Reporting by Naveen Thukral; Editing by Sunil Nair)
  
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