April 27, 2018 / 1:09 AM / a month ago

GRAINS-Soybeans up for fourth day on hopes of Chinese buying, Argentina crop losses

    SINGAPORE, April 27 (Reuters) - Chicago soybean futures rose for a fourth consecutive
session on Friday with the market set to finish the week on a positive note on expectations of
Chinese buying and lower crop yields in Argentina following a severe drought.
    Wheat gained ground, rising for three in four sessions on concerns over U.S. winter crop,
while corn ticked higher after closing marginally lower with ample world supplies keeping a lid
on the market.
    
    FUNDAMENTALS
    * Soybean futures are being underpinned on hopes of a pickup in demand from China, the
world's top buyer of the oilseed.
    * China's purchases of U.S. soybeans have come to a grinding halt as fears of further action
by Beijing to curb imports of U.S. crops following last week's anti-dumping move on sorghum
rattled the agriculture industry.
    * The U.S. Department of Agriculture (USDA) said weekly export sales of soybeans came in at
537,800 tonnes, down from 2.13 million tonnes a week ago. Analysts had expected soybean export
sales in a range from 800,000 tonnes to 1.4 million tonnes.
    * Declining yields in Argentina supported the soybean market. More than half of Argentina's
2017-18 soy crop has been harvested with yields coming in at an average 2.4 tonnes per hectare,
the Buenos Aires Grains Exchange said on Thursday, warning that yields will likely fall as
harvesting continues.
    * The excessively hot and dry weather has decreased yields from their average of 2.9 tonnes
per hectare over recent years.
    * Corn export sales of 620,500 tonnes, down from 1.20 million tonnes, also were well below
trade expectations. Export sales of wheat totalled 577,900 tonnes.
    * Wheat prices are being supported by dry weather in the southern U.S. Plains. 
    * The International Grains Council on Thursday made a slight increase to its forecast for
2018/19 global corn production although a drawdown in stocks is still anticipated for a second
successive season.
    * The inter-governmental body, in a monthly report, increased its forecast for the 2018/19
corn crop by 2 million tonnes to 1.054 billion tonnes.
        
    MARKET NEWS
    * A gauge of global equities advanced on Thursday, buoyed by a round of solid quarterly
earnings in Europe and the United States, while the euro weakened after the head of the European
Central Bank hailed "solid" economic growth, but kept interest rates unchanged.
    
    DATA AHEAD (GMT)
0530  France               Preliminary GDP              Q1
0600  Germany              Import prices                March
0645  France               Consumer spending            March
0800  Germany              Unemployment rate            April
0900  Euro zone            Business climate             April
1230  U.S.                 Advance GDP                  Q1
1230  U.S.                 Employment costs             Q1
    
 Grains prices at 0048 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  492.00   2.50     +0.51%   +1.60%       479.90   59
 CBOT corn   395.50   0.25     +0.06%   +1.28%       391.58   58
 CBOT soy    1042.25  2.75     +0.26%   +0.80%       1046.42  45
 CBOT rice   12.90    -$0.05   -0.39%   -1.75%       $12.67   38
 WTI crude   68.10    -$0.09   -0.13%   +0.59%       $65.35   63
 Currencies                                                   
 Euro/dlr    $1.211   -$0.005  -0.41%   -0.99%                
 USD/AUD     0.7552   -0.001   -0.15%   -0.67%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
  
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