October 5, 2017 / 3:09 AM / 5 months ago

GRAINS-Soybeans up for second day on U.S. rains, Brazil planting delays

    * Soybeans extend gains as rains seen delaying harvest
    * Dryness in Brazil hits planting in South America

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 5 (Reuters) - Chicago soybean futures rose
for a second session on Thursday as rains delayed the harvest in
parts of the Midwest United States and dry weather slowed the
pace of planting in Brazil, underpinning prices.
    Wheat edged higher after dropping 1.3 percent on Wednesday
when the market came under pressure from lack of demand for U.S.
    The Chicago Board Of Trade (CBOT) most-active soybean
contract added 0.6 percent to $9.63-3/4 a bushel by 0248
GMT, after firming 0.3 percent on Wednesday.
    Wheat gained 0.3 percent to $4.43-1/2 a bushel and
corn rose 0.6 percent to $3.50-1/4 a bushel.
    Rains crossed parts of Iowa, Minnesota and Wisconsin with
light showers crossing areas of Missouri, Illinois and Indiana.
    "U.S. soybean harvest is being delayed as rains seem to be
an issue," said Phin Ziebell, agribusiness economist at National
Australia Bank.
    "There are some problems with Brazilian planting but that is
a little bit speculative at this stage. It is not a demand side
of the story this week as China is closed."
    The soybean market is being underpinned by dry planting
weather in Brazil.
    The country's oilseeds industry group Abiove estimated the
nation's soybean output at 108.5 million tonnes in the 2017/18
season, down from 113.8 million tonnes in the prior crop cycle.
    Near-record U.S. yields of soybean and corn crops are
expected to keep a lid on prices.
    Commodity brokerage INTL FCStone on Monday raised
its estimate of the average U.S. 2017 corn yield to 169.2
bushels per acre (bpa), from 166.9 bpa in its previous monthly
report released Aug. 31.
    The firm also raised its U.S. soybean yield forecast, to
49.9 bpa from 49.8 previously.
    In news, China's soybean imports from the United States are
likely to be delayed by at least two weeks as suppliers struggle
to find high-quality beans following crop damage from
hurricanes, two trade sources with knowledge of the matter said.

    Shipment delays could result in tight supplies at the end of
October and early November, they warned, driving up soymeal
 and soyoil prices in the world's biggest
importer of soybeans.
    Wheat prices remained capped by export competition created
by a record Russian harvest this year, a factor underscored by
the latest Egyptian purchase of Russian wheat on Tuesday.

    Commodity funds were net sellers of CBOT corn, wheat and
soymeal futures contracts on Wednesday and net buyers of
soybeans and soyoil, traders said.
 Grains prices at  0248 GMT
 Contract    Last    Change  Pct chg               MA 30   RSI
 CBOT wheat  443.50  1.50    +0.34%                443.50  45
 CBOT corn   350.25  2.00    +0.57%                350.25  48
 CBOT soy    963.75  5.50    +0.57%                963.75  51
 CBOT rice   12.05   $0.02   +0.17%                $12.05  35
 WTI crude   49.96   -$0.02  -0.04%                $49.96  40
 Euro/dlr    $1.176  $1.176                                
 USD/AUD     0.7828  0.783                                 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Christian
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