March 11, 2020 / 2:00 AM / a month ago

GRAINS-Soybeans rise for 2nd day, but hopes of higher inventory cap gains

SINGAPORE, March 11 (Reuters) - Chicago soybean futures rose for a second consecutive session on Wednesday as the market continued to recover from a six-month low hit earlier this week, although gains were curbed by expectations of higher global inventories.

Wheat slid for the first time in three sessions, while corn lost ground after Tuesday’s gain.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade rose 0.7% to $8.82 a bushel by 0138 GMT. The market dropped to its weakest since Sept. 11 at $8.67 a bushel on Monday.

* Corn fell 0.1% to $3.77-1/4 a bushel and wheat gave up 0.1% to $5.21-3/4 a bushel.

* Global soybean supplies will be bigger than previously forecast due to increased harvest expectations in Brazil and Argentina, the U.S. government said on Tuesday.

* World soybean ending stocks for the 2019/20 marketing year were pegged at 102.44 million tonnes, according to the U.S. Agriculture Department’s World Agricultural Supply and Demand Estimates report. That compares with the USDA’s February forecast of 98.86 million tonnes.

* Expected rainfall over the next few days in Argentina will bring relief to soybean and corn crops in the country’s central agricultural regions, where both have recently been hit by high temperatures and dry conditions.

* Wheat-belt farmers in Australia’s east are rushing to secure seed several weeks before the all-important winter crop planting starts amid hopes that a devastating three-year drought is coming to an end.

* Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.

MARKET NEWS

* Asian shares and Wall Street futures fell as growing scepticism about Washington’s stimulus package to fight the coronavirus outbreak knocked the steam out of an earlier rally.

DATA/EVENTS 0930 UK GDP Est 3M/3M Jan 0930 UK GDP Estimate MM, YY Jan 0930 UK Manufacturing Output Jan 1230 US CPI MM, SA Feb (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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