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GRAINS-Soybeans up for 4th session on Argentina dryness, wheat dips
December 6, 2017 / 3:48 AM / 11 days ago

GRAINS-Soybeans up for 4th session on Argentina dryness, wheat dips

    * Soybeans trade near 4-month high, rise for fourth session
    * Forecasts of dry weather in Argentina underpinning
soybeans
    * Wheat eases for 3rd day on poor demand for U.S. supplies

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Dec 6 (Reuters) - Chicago soybean futures rose
for a fourth consecutive session on Wednesday, with the market
trading near its highest since late July on concerns over dry
weather reducing yields in Argentina, the world's third-largest
supplier.
    Wheat ticked lower as U.S. suppliers struggle to win
business amid plentiful global supplies while corn edged up.
    Soybeans for January delivery on the Chicago Board of Trade
 were up 0.3 percent at $10.11-1/2 a bushel by 0318 GMT.
That is just a tad off Tuesday's peak of $10.15, which was the
highest since July 28.
    "The Australian meteorology bureau has confirmed that La
Nina has arrived which means dry weather for parts of the United
States and South America," said one India-based commodity
analyst at an international bank.
    "The market is trying to build a weather premium but we feel
it is bit too early to get worried about Argentina's soybean
crop."
     The tropical Pacific Ocean has reached La Nina temperature
levels, although climate models suggest the weather event will
be weak and short-lived, Australian weather officials said on
Tuesday.
    "Concerns that Argentina's soybean output is genuinely in
danger are premature as the crop is only half-planted and the
crucial development period is still months away," Karen Braun, a
Thomson Reuters columnist wrote on Tuesday.
    "But rainfall has not been materializing as forecast, and
the dryness has caused a slowdown in plantings. There is also
potential for a drought-inducing La Nina pattern to persist
throughout most of the growing season."
    The uncertainty surrounding Argentine crop prospects fuelled
hopes that China, the world's biggest soybean importer, might
start booking more U.S. soy cargoes. Sales of U.S. soybeans in
the 2017-18 marketing year that started Sept. 1 have lagged the
pace set at the same time last year.
    Private analytics firm Informa Economics cut its estimate of
Brazil's 2017/18 soybean and corn crops, trade sources said.
    Informa put 2017/18 Brazil soybean production at 110 million
tonnes, down 1 million from its previous estimate, and put
2017/18 all-corn production at 89 million tonnes, down 3 million
from a previous forecast.
    CBOT wheat fell 0.1 percent to $4.32-1/4 a bushel and
corn added 0.1 percent to $3.54 per bushel.
    Cheaper wheat supplies from the Black Sea region are giving
stiff competition to U.S. exporters. 
    Egypt, the world's largest wheat buyer, has 3.4 million
tonnes of wheat reserves, enough for more than four-and-a-half
months, the supply minister said.
    Commodity funds were net buyers of CBOT soybean, soymeal,
soyoil and corn futures contracts on Tuesday and net sellers of
wheat futures, traders said.
    
 Grains prices at  0318 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  432.25   -0.50   -0.12%   -0.69%       441.37  34
 CBOT corn   354.00   0.25    +0.07%   +0.14%       357.85  43
 CBOT soy    1011.50  3.00    +0.30%   +1.30%       989.59  73
 CBOT rice   12.26    -$0.07  -0.61%   +0.62%       $11.95  49
 WTI crude   57.38    -$0.24  -0.42%   -0.16%       $56.27  54
 Currencies                                                 
 Euro/dlr    $1.183   $0.000  +0.03%   -0.30%               
 USD/AUD     0.7581   -0.002  -0.30%   -0.22%               
 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
       

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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