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GRAINS-Soybeans set for 4th week of gain on demand hopes, Brazil dryness
September 15, 2017 / 3:57 AM / 7 days ago

GRAINS-Soybeans set for 4th week of gain on demand hopes, Brazil dryness

    * Soybeans up 1.4 pct this week on strong demand
    * Dry weather is Brazil underpins Chicago soybean futures
    * Wheat on track for biggest weekly gains since early July

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 15 (Reuters) - U.S. soybeans eased slightly
on Friday, but the market is poised for a fourth straight week
of gains on the back of strong demand and dry weather in Brazil
where planting is due to start.
    Wheat is set for its biggest weekly gain in more than two
months as short-covering drives prices higher. 
    The Chicago Board of Trade most-active soybean contract
 is up 1.4 percent this week while wheat has risen 1
percent, after closing last week little changed.
    Corn is down 1 percent for the week, its first loss in
three.
    The U.S. Department of Agriculture reported export sales of
U.S. soybeans in the latest week at 1.6 million tonnes, topping
a range of trade expectations for 1.0 million to 1.3 million
tonnes.
    Separately, the agency said private exporters sold another
198,000 tonnes of U.S. soybeans to China.
    The soybean market was trading down 0.1 percent at $9.75-1/2
 a bushel by 0335 GMT, wheat 0.2 percent lower at $4.42-1/4 a
bushel and corn down 0.3 percent at $3.53-1/4 a bushel.
    Still, leading oilseed industry analyst Thomas Mielke said
soybean imports by China, the world's biggest buyer, are likely
to remain unchanged in 2017/18 at this year's record level of 93
million tonnes due to a rise in domestic production and higher
carry-forward stocks.
    There was additional support for the soybean market stemming
from dryness in Brazil.
    "The market is also discussing dry conditions in Brazil
where soybean planting will begin next month," said Tobin Gorey,
director of agricultural strategy at Commonwealth Bank of
Australia. 
    "Soybean regions in Brazil's Centre South and Centre West
are very dry. And the market is joining that starting point with
a modest La Nina event that is evolving in the Pacific Ocean."
    The wheat market is being underpinned by short-covering and
slight reduction in global supplies estimated by the USDA.
    Flooding over last weekend in Argentina could cause a loss
of 70,000 hectares of wheat plantings, out of a total 5.35
million hectares planted with the grain in the 2017-18 season,
the Buenos Aires Grains Exchange said on Thursday.
    
 Grains prices at  0335 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  442.25  -0.75   -0.17%   -0.23%       447.38  60
 CBOT corn   353.25  -1.00   -0.28%   +0.50%       362.37  45
 CBOT soy    975.50  -0.50   -0.05%   +1.56%       950.63  64
 CBOT rice   12.81   $0.00   +0.00%   -1.08%       $12.65  54
 WTI crude   49.73   -$0.16  -0.32%   +0.87%       $48.15  64
 Currencies                                                
 Euro/dlr    $1.191  $0.000  -0.04%   +0.24%               
 USD/AUD     0.7993  -0.001  -0.15%   +0.11%               
 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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