November 16, 2017 / 2:58 AM / 7 months ago

GRAINS-Soybeans up for 2nd day on strong demand, wheat rebounds

    * Soybeans up on strong domestic U.S. demand, higher China
    * Wheat rises after biggest decline on Wednesday since early

 (Adds details, quotes)
    By Naveen Thukral
    Nov 16 (Reuters) - Chicago soybean futures rose for a second
session on Thursday, with prices underpinned by strong demand
from U.S. processors and expectations of higher imports by top
buyer China.
    Wheat bounced back after suffering its biggest one-day
decline since early September in the previous session, while
corn edged higher.
    The Chicago Board of Trade most-active soybean contract
 added 0.2 percent to $9.77-3/4 a bushel by 0236 GMT,
having climbed 0.9 percent in the last session.
    Wheat gained 0.4 percent to $4.21-1/2 a bushel after
dropping 1.9 percent on Wednesday, the biggest single-day
decline since Sept. 7, while corn added 0.1 percent to
$3.38-1/2 a bushel.
    U.S. soybean processors accelerated their crush pace in
October to the fifth highest on record and second highest ever
for the month, the National Oilseed Processors Association said
on Wednesday.
    NOPA said that its members crushed 164.242 million bushels
of soybeans in October, up from 136.419 million bushels in
September. The October crush last year was 164.641 million
bushels, which was the highest ever for the month.
    Typically, soybean futures climb after the U.S. harvest ends
and selling by farmers slows. The U.S. Department of Agriculture
late on Monday said the soybean harvest was 93 percent finished.
    There was additional support for soybeans stemming from
expectations of strong demand from China, which buys more than
60 percent of soybeans traded across the globe.
    China will import 100 million tonnes of soybeans in 2017/18,
a senior executive at COFCO Corp forecast on Wednesday, topping
official U.S. and Chinese estimates for intake by the world's
top importer of the oilseed.
    "Both pieces of news helped oilseed prices," said Tobin
Gorey, director of agricultural strategy at Commonwealth Bank of
Australia. "Soybean prices are nearing the same thicket of
technical levels that prompted selling on the way down. On the
way up, the same levels might instead prompt some buying."
    U.S. soybean processors last month squeezed the lowest
amount of soyoil from each bushel of beans in two years,
according to an industry report on Wednesday, raising concern
about the 2017 soy crop's overall oil content.
    Less oil per bushel of beans would mean tighter supplies and
higher prices for the vegetable oil used by food and biofuel
producers, but could bolster margins for processors.
    Commodity funds were net buyers of Chicago Board of Trade
soybean, soyoil, corn and soymeal futures contracts on
Wednesday, and net sellers of wheat, traders said.
    In the wheat market, the focus is on Egypt which set a
tender on Wednesday to buy an unspecified amount of wheat from
global suppliers for shipment from Jan. 1-10.
    Egypt, the world's biggest wheat importer, has been buying
mainly from the Black Sea region.
 Grains prices at  0236 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  421.50  1.50     +0.36%   -1.52%       429.98  40
 CBOT corn   338.50  0.25     +0.07%   +0.30%       347.34  29
 CBOT soy    977.75  1.50     +0.15%   +1.03%       987.69  52
 CBOT rice   12.08   -$0.01   -0.04%   +5.09%       $11.92  79
 WTI crude   55.34   $0.01    +0.02%   -0.65%       $53.54  49
 Euro/dlr    $1.178  -$0.001  -0.08%   -0.12%               
 USD/AUD     0.7599  0.001    +0.16%   -0.39%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral; editing by Richard Pullin and
Biju Dwarakanath)
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