February 7, 2018 / 3:29 AM / 12 days ago

GRAINS-Soybeans hit highest in nearly a week on Argentina, Brazil weather woes

    * Chicago soybeans up for second day, at highest since Feb.
1
    * Corn futures climb to strongest in more than five months

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Feb 7 (Reuters) - Chicago soybean futures rose
for a second session on Wednesday to hit their highest in almost
a week, with prices underpinned by dry weather curbing
Argentina's crop yields and excessive rains slowing Brazil's
harvest.
    Corn prices marked their highest since late August on strong
demand for U.S. shipments, while wheat rose for a second session
as investors covered short positions.
    The most-active soybean contract on the Chicago Board of
Trade (CBOT) had risen 0.7 percent to $9.92-3/4 a bushel
by 0304 GMT, after touching its highest since Feb. 1 at
$9.93-1/4 a bushel.
    Corn added 0.3 percent to $3.64-1/2 a bushel, its
highest since Aug. 22. Wheat gained 0.7 percent to
$4.49-1/2 a bushel, having closed up 1.4 percent on Tuesday.
    "Argentina's weather is on a track that looks likely to see
further yield reductions," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
    "The market has some short term concerns about Brazil’s
overworked and fragile logistics delaying early soybeans getting
onto the water."
    Soybeans are drawing support on worries that rains forecast
for Argentina's crop belt late this week and possibly through
the weekend might not be enough to relieve stress on crops.
Argentina is the world's top exporter of soymeal and soyoil, and
the No. 3 corn supplier.
    Rains have delayed the soybean harvest in Brazil.

    Strong demand for U.S. cargoes continues to boost corn
prices. 
    The U.S. Department of Agriculture on Tuesday said private
exporters sold a total of 225,000 tonnes of U.S. corn in the
last day, the government's third corn sales announcement in as
many business days.
    Commodity funds were net buyers of CBOT corn, soybean,
wheat, soyoil and soymeal futures on Tuesday, traders said.
Trade estimates of net fund buying in corn ranged from 14,000 to
21,000 contracts. The table below reflects the average of
estimates from trade sources
    CME Group is talking to customers about potential changes to
its biggest agricultural futures markets - corn and soybeans –
to address concerns the contracts' prices are not accurately
reflecting the underlying U.S. cash grain markets, the company's
clients told Reuters.
    CME's review of the flagship CBOT Board of Trade futures
contracts has not been previously reported. It marks the latest
ripple effect from a glut of food commodities that has depressed
prices, hurt U.S. farmers' incomes and hobbled global grain
traders.

 Grains prices at  0304 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  449.50  3.25     +0.73%   +0.62%       433.32  61
 CBOT corn   364.50  1.00     +0.28%   +0.83%       353.83  71
 CBOT soy    992.75  6.50     +0.66%   +1.43%       974.27  59
 CBOT rice   12.57   $0.02    +0.16%   +0.88%       $12.11  77
 WTI crude   63.93   $0.54    +0.85%   -0.34%       $63.31  46
 Currencies                                                 
 Euro/dlr    $1.239  -$0.003  -0.27%   -0.07%               
 USD/AUD     0.7889  -0.022   -2.71%   -1.73%               
 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)
  
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