December 20, 2017 / 1:48 AM / a month ago

GRAINS-Soybeans near 2-1/2 month low as Argentina rains weigh on prices

    SINGAPORE, Dec 20 (Reuters) - Chicago soybean futures were
little changed on Wednesday with the market trading near its
lowest since early October on pressure from crop-boosting rains
across Argentina's drought-hit farm belt. 
    Wheat edged higher as the market was supported by
expectations of improved demand for U.S. wheat which has
struggled to win business due to stiff competition from the
Black Sea region.
    
    FUNDAMENTALS
    * Brazil and Argentina are on track for another year of
bumper soybean production as rains ease concerns over dry
weather brought by the La Nina weather pattern. 
    * Rains that fell on Argentina's main farm belt over the
weekend brought relief to parched soybean and corn-growing land,
meteorologists said on Monday, allowing the planting of crops to
resume in most of the affected areas.
    * Brazilian farmers are expected to produce 114.57 million
tonnes of soybeans in the 2017/18 crop cycle, consultancy Safras
& Mercado said on Monday. The figure represents a slight
downward adjustment from an October estimate of 114.7 million
tonnes, although it would still be an all-time high for Brazil.
    * Recent price declines in wheat have attracted fresh export
interest in U.S. shipments. U.S. wheat was the cheapest origin
grain offered in an Iraqi tender for hard milling wheat.

     * Commodity funds were net buyers of Chicago Board of Trade
corn and soyoil contracts on Tuesday and net sellers of
soybeans, soymeal and wheat, traders said.
    
    MARKET NEWS
    * Asian shares fell on Wednesday, taking their cues from
Wall Street with investor enthusiasm toward U.S. tax changes
ebbing as the long-awaited reform bill wound its way through
Congress, while higher U.S. Treasury yields underpinned the
dollar.
    
    DATA AHEAD (GMT)
0700  Germany              Producer prices              Nov
0900  Euro zone            Current account              Oct
1500  U.S.                 Existing home sales          Nov

 Grains prices at  0129 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  420.00  0.50    +0.12%   +0.42%       432.78  68
 CBOT corn   348.00  0.50    +0.14%   +0.14%       353.65  70
 CBOT soy    956.50  0.50    +0.05%   -1.11%       985.34  24
 CBOT rice   11.80   $0.09   +0.73%   +0.81%       $12.03  46
 WTI crude   57.75   $0.19   +0.33%   +1.03%       $57.09  57
 Currencies                                                
 Euro/dlr    $1.184  $0.001  +0.04%   +0.53%               
 USD/AUD     0.7663  0.000   -0.01%   +0.03%               
 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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