January 26, 2018 / 3:24 AM / 23 days ago

GRAINS-Soybeans set for 2nd week of gains, wheat up for 3rd session

    * Soybeans edged higher, rising for 9 out of 10 sessions
    * Wheat on track for biggest weekly gains since June

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 26 (Reuters) - Chicago soybean futures gained
ground on Friday, rising for nine out of 10 sessions and poised
for a second week of gains on the back of dryness in Argentina,
the world's third largest supplier.
    Wheat rose for a third consecutive session, with the market
set for its biggest weekly gain in almost seven months on
short-covering and concerns over lack of protective snow cover
for the U.S. winter wheat crop.
    The Chicago Board of Trade most-active soybean contract
 is up 1.7 percent this week, taking gains since the
beginning of last week to 3.5 percent. 
    Wheat has climbed 3.4 percent, the biggest weekly rise
since end-June, and corn has added 0.9 percent, rising for
a second week in a row.
    "There is dry weather in Argentina, but bumper production in
Brazil will offset any supply shortfall," a Singapore-based
trader said. 
    "For wheat, the main driver is short-covering. As far as
fundamentals are concerned, there is not much change as globally
there are plenty of supplies. I think prices will bounce around
current levels."
    Argentina trimmed its soy and corn-planting estimates on
Thursday as key parts of the country's Pampas grains belt
contend with excessively hot, dry conditions that could cause a
decline in yields and sowing area.
    In its monthly crop report, the Agriculture Ministry said it
expected 16.75 million hectares to be planted with soy, down
slightly from its previous 16.8-million-hectare estimate.
    However, big harvests in Brazil and the United States, the
world's top two soybean exporters, may offset losses in
Argentina. 
    The U.S. Department of Agriculture this month projected
world soybean inventories at the end of the 2017/18 marketing
year at an all-time high of 98.57 million tonnes.
    Brazil is eating into U.S. market share in China. 
    China, which imports 60 percent of the soybeans traded
worldwide, bought 50.93 million tonnes from Brazil in 2017,
accounting for 53.3 percent of total purchases, according to
customs data released on Thursday. Chinese buyers mainly use soy
to churn out cooking oil and ingredients for animal feed.

    U.S. sales came in at 32.9 million tonnes, or 34.4 percent
of China's imports, the exporter's lowest share since at least
2006.
    Recent gains in the markets prompted U.S. farmers to sell
corn and soybeans they had been keeping in storage from previous
harvests due to low prices, agricultural merchants said.
    Commodity funds were net buyers of CBOT wheat on Thursday,
traders said. They were net even in soybeans and net sellers of
CBOT corn, soymeal and soyoil.
    
 Grains prices at  0302 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  437.00  2.50    +0.58%   +3.68%       425.66  68
 CBOT corn   355.75  0.50    +0.14%   +1.28%       350.62  66
 CBOT soy    994.75  2.50    +0.25%   +0.86%       971.25  80
 CBOT rice   12.17   $0.03   +0.25%   -0.25%       $12.01  68
 WTI crude   65.40   -$0.11  -0.17%   -0.32%       $61.39  78
 Currencies                                                
 Euro/dlr    $1.242  $0.002  +0.15%   +1.03%               
 USD/AUD     0.8051  -0.001  -0.12%   +0.69%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Amrutha Gayathri)
  
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