January 19, 2018 / 3:13 AM / 4 months ago

GRAINS-Soybeans set for biggest weekly gain in 3 months on Argentina crop worries

    * Soybeans up for 5th session, up 1.5 pct this week
    * Dry weather hurting Argentina's crop, raising supplies
concerns
    * Ample U.S., Brazilian inventories to cap gains

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 19 (Reuters) - Chicago soybean futures rose
for a fifth consecutive session on Friday with the market poised
for its biggest weekly gain in three months on support from dry
weather hurting the crop in Argentina, the world's third largest
supplier.
    Wheat gained for a third session in a row with futures on
track for their biggest weekly rise since mid-December as
short-covering underpinned the market.
    The Chicago Board of Trade most-active soybean contract
 is up nearly 1.5 percent this week, the largest gain since
mid-October and wheat has gained 1.3 percent after posting
losses of nearly 2.4 percent the week before.
    Corn has climbed 1.7 percent this week, on track for
its biggest weekly climb since Dec. 1.
    Dry weather is persisting across a key growing region in
Argentina, the world's third largest exporter of soybeans and
No. 1 supplier of soyoil and soymeal.
    The Buenos Aires Grain Exchange may again reduce its 2017/18
soybean planting area estimate due to sowing delays caused by
dry weather in the northwestern part of Argentina, it said on
Thursday.
    Last week the exchange trimmed its 2017/18 soy planting area
estimate to 18 million hectares (44.5 million acres) from 18.1
million, citing dryness in the bread-basket province of Buenos
Aires.
    "Argentina is a supply-risk but we have seen these concerns
come and go," said Phin Ziebell, agribusiness economist at
National Australia Bank. "Global soybean inventory is pretty
high."
    The wheat market is being underpinned by investors'
short-covering. 
    Commodity funds were net buyers of CBOT wheat, soybean and
soymeal futures contracts on Thursday and net sellers of corn
and soyoil futures, traders said.
    The International Grains Council (IGC) raised its forecast
for global wheat production in the 2017/18 season, but said
global wheat stocks in 2018/19 could decline for the first time
in six years.
    The IGC also raised its forecast for 2017/18 global corn
output by 14 million tonnes to 1.054 billion tonnes, partly
reflecting upward revisions for the European Union, China and
Nigeria.
     
 Grains prices at  0250 GMT
 Contract    Last    Change  Pct chg               MA 30   RSI
 CBOT wheat  426.00  0.75    +0.18%                424.75  53
 CBOT corn   352.00  0.50    +0.14%                350.36  60
 CBOT soy    974.75  1.75    +0.18%                974.67  67
 CBOT rice   12.14   $0.00   -0.04%                $12.05  71
 WTI crude   63.01   -$0.94  -1.47%                $60.07  57
 Currencies                                                
 Euro/dlr    $1.224  $0.000  +0.02%                        
 USD/AUD     0.8013  0.002   +0.19%                        
 
 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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