October 13, 2017 / 3:19 AM / 4 months ago

GRAINS-Soybeans set for biggest weekly rise in 3 mths as U.S. cuts crop forecast

    * Soybeans up 2.2 pct this week, biggest gain since early
    * Market surprised by reduction in U.S. yield estimate
    * Wheat faces 3rd week of losses, USDA raises supply

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 13 (Reuters) - Chicago soybean futures edged
higher on Friday, with the market poised for the biggest weekly
gain in more than three months after the U.S. government
unexpectedly cut its production forecast.
    Wheat is on track for a third week of decline as the U.S.
Department of Agriculture lifted its estimate for global
supplies, while corn rose for a second session, tracking gains
in soybeans.
    The Chicago Board Of Trade most-active soybean contract
 is up 2.2 percent this week, the biggest weekly gain since
early July.
    Wheat is down 2.8 percent for the week, the biggest
weekly loss since Aug. 11 and falling for a third week. Corn
 is little changed for the week, after losing ground last
    The USDA cut its U.S. soybean yield estimate to 49.5 bushels
per acre (bpa), down from 49.9 bpa in September and below all
but one estimate in a Reuters poll.
    In addition, dryness in Brazil is supporting the soybean
    "Brazil's dry soybean regions, Mato Grosso in particular,
look unlikely to get enough rain to broadly raise soil moisture
for another week or so," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
    "The end of October is also now coming into the forecast
    The agency raised its U.S. corn yield estimate to 171.8 bpa,
above even the highest in a range of trade estimates.

    Still, an unusually slow start to U.S. corn and soybean
harvests has raised questions about the accuracy of the
government's production forecasts and some traders made big bets
the crop size will be substantially smaller when all fields are
    For wheat, the agency raised its U.S. and global 2017/18
wheat ending stocks forecasts. It lifted the forecast for world
inventories at the end of the crop in June 2018 to 268.13
million tonnes from 263.14 million tonnes estimated last month.
    Commodity funds were net buyers of CBOT soybean, corn,
soymeal and soyoil futures contracts on Thursday and net sellers
of wheat, traders said.
    Trade estimates of net fund buying in soybeans ranged from
18,000 to 25,000 contracts and in corn from 9,000 to 15,000
 Grains prices at  0241 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  431.25  0.75    +0.17%   -0.46%       443.68  32
 CBOT corn   350.00  1.00    +0.29%   +1.16%       352.33  52
 CBOT soy    994.00  2.00    +0.20%   +2.98%       967.23  75
 CBOT rice   12.23   -$0.02  -0.16%   +1.62%       $12.39  65
 WTI crude   50.89   $0.29   +0.57%   -0.80%       $50.06  53
 Euro/dlr    $1.185  $0.002  +0.16%   -0.08%               
 USD/AUD     0.7839  0.002   +0.26%   +0.67%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Biju Dwarakanath)
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