September 22, 2017 / 2:19 AM / 9 months ago

GRAINS-Soybeans set for 5th week of gains on strong demand, Brazil dryness

    * Strong U.S. exports, dry weather in Brazil buoy soybean
    * Wheat poised for 2nd week of gains on short-covering

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Sept 22 (Reuters) - Chicago soybean futures on
Friday were on track for a fifth consecutive week of gains, with
prices underpinned by strong demand and dry weather threatening
planting in Brazil.
    Wheat is poised for a second week of gains, supported by
short-covering, while corn is facing its second week of losses
as the harvest of a bumper crop gathers pace in the United
    The Chicago Board of Trade most-active soybean contract
 was up 0.7 percent for the week, taking gains to more than
4 percent over the past five weeks.
    Wheat is up 1 percent this week, extending two-week
gains to 3.6 percent, while corn is down 1 percent in its
second week of decline.
    "The oilseed markets continue to have an eye on Brazil's dry
soybean regions," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
    "Weather forecasters expect some rainfall to move through
parts of these regions next week though their confidence in the
likely distribution is low."
    Recent dry weather in some of Brazil's important farming
states has raised fears that the world's leading exporter of
soybeans might develop planting delays.
    Given that the soybean planting season just started on Sept.
16, it is far too early to know if that will play out, Karen
Braun, a market analyst for Reuters, wrote in a column.

    There was support for soybeans stemming from a
larger-than-expected weekly export sales tally. The USDA
reported export sales of U.S. soybeans in the latest week at
more than 2.3 million tonnes, topping a range of trade estimates
for 1.2 million to 1.5 million.
    Through its daily reporting system, the USDA said private
exporters sold 132,000 tonnes of U.S. soybeans to China.
    The wheat market has been underpinned by short-covering and
weather issues in key producers Australia and Argentina. 
    Commodity funds hold a large net short position in CBOT
wheat futures, leaving the market vulnerable to bouts of
    Excessive rains in Argentina have threatened yield
prospects, while Australia's crop has suffered from persistent
dryness in the east.

 Grains prices at  0155 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  453.75  1.25    +0.28%   +0.89%       442.09  72
 CBOT corn   351.00  0.75    +0.21%   +0.29%       357.16  57
 CBOT soy    975.75  5.00    +0.52%   +0.59%       951.62  72
 CBOT rice   12.73   $0.02   +0.16%   -0.59%       $12.70  55
 WTI crude   50.60   $0.05   +0.10%   +0.38%       $48.31  70
 Euro/dlr    $1.196  $0.002  +0.13%   +0.54%               
 USD/AUD     0.7913  -0.002  -0.23%   -1.47%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
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