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GRAINS-Soybeans rise on strong demand, wheat eases after rally
September 18, 2017 / 1:22 AM / 3 months ago

GRAINS-Soybeans rise on strong demand, wheat eases after rally

    SINGAPORE, Sept 18 (Reuters) - Chicago soybean futures rose
on Monday, gaining ground for three out of four sessions on
expectations of strong demand from China although expanding
harvest in the United States kept a lid on the market.
    Wheat ticked lower after climbing 1.4 percent on Friday on
concerns over lower production in Australia, the fourth largest
exporter.
    
    FUNDAMENTALS
    * Export demand is leading support to soybeans. The U.S.
Department of Agriculture said private exporters sold 132,000
tonnes of U.S. soybeans to China, the latest in a string of U.S.
soybean sales announced last week.
    * Cash values for soybeans continued to firm at the U.S.
Gulf, supported by exporters seeking beans for September
loadings.
    * In addition, Argentina's 2017/18 soybean harvest is
expected to fall by as much as 7 percent to 52 million tonnes
compared with the 2016/17 crop year, local agriculture analysts
said on Friday, citing low profit margins and excess water
caused by heavy rains.
    * But the gain in soybean prices was capped by expectations
of expanding harvest progress in the U.S. Midwest in the coming
days. Drier weather in the eastern Midwest and Delta will favour
corn and soybean drydown and early harvesting, the MDA Weather
Services said in a note to clients.
    * For wheat, the Australian government last week cut its
estimate of the country's 2017/18 harvest to 21.64 million
tonnes, an eight-year low.
    * Looking at the next year, private analytics firm Informa
Economics expects U.S. farmers in 2018 to plant more acres to
corn and wheat and fewer to soybeans, according to an Informa
client note.
    * The firm projected U.S. 2018 corn plantings at 91.880
million acres, up from its estimate of 90.660 million seeded in
2017, according to the note dated Thursday and seen by Reuters
on Friday.
    
    MARKET NEWS
    * Asian shares crept ahead and the dollar firmed on Monday
in a cautious start to a week in which the U.S. Federal Reserve
is likely to wrestle with its bloated balance sheet as part of a
long reversal of super-cheap money worldwide.
    
    
    DATA/EVENT AHEAD (GMT)    
0130  China            House prices                 Aug
0900  Euro zone        Inflation final              Aug
1400  U.S.             NAHB housing market index    Sep
    
 Grains prices at  0109 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  448.75  -0.25   -0.06%   +1.30%       446.52  74
 CBOT corn   354.75  0.00    +0.00%   +0.14%       361.54  66
 CBOT soy    972.00  3.25    +0.34%   -0.41%       950.91  67
 CBOT rice   12.83   $0.03   +0.20%   +0.16%       $12.66  69
 WTI crude   49.83   -$0.06  -0.12%   -0.12%       $48.16  66
 Currencies                                                
 Euro/dlr    $1.195  $0.000  +0.03%   +0.23%               
 USD/AUD     0.8004  0.000   +0.04%   -0.01%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Michael Perry)
  

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