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GRAINS-Soybeans up for third session on Argentina dryness; wheat eases
December 5, 2017 / 3:20 AM / 12 days ago

GRAINS-Soybeans up for third session on Argentina dryness; wheat eases

    * Soybeans gain more ground, trade near four-month high
    * Wheat falls as U.S. exporters face stiff competition

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 5 (Reuters) - Chicago soybean futures rose
for a third straight session on Tuesday with the market trading
near its highest in more than four months, buoyed by dry weather
in Argentina and strong U.S. demand.
    Wheat slid for a second day as U.S. exporters face stiff
competition in an amply supplied global market.
    The Chicago Board of Trade most-active soybean contract
 gained 0.2 percent to $10.00-1/2 a bushel by 0258 GMT, not
far from Monday's peak of $10.08-1/2, the highest since July 31.
    Wheat lost 0.1 percent to $4.35 a bushel and corn
 was down 0.1 percent to $3.53-1/4 a bushel.
    Hot and dry weather in parts of Argentina's
oilseed-producing areas is expected to reduce yields.
    Rainfall over the weekend was limited in Argentina, the top
global soymeal and soyoil exporter, and showers were expected to
be limited this week, MDA Weather Services said in a note to
clients.
    A report from the U.S. Department of Agriculture (USDA)
showed the U.S. soybean crush in October at about 176 million
bushels was above analysts' estimates, reflecting strong
domestic demand. 
    "Looks like Argentina's soybean plantings are getting
delayed because of dry weather, there could be some impact on
yields although Brazil's crop seems to be doing fine," said Phin
Ziebell, an agribusiness economist at National Australia Bank.
    Brazil's 2017/18 soybean crop could reach 107.6 million
tonnes, broker and analyst INTL FCStone said on Monday, raising
its forecast from 106.1 million tonnes previously as favourable
weather is seen boosting agricultural yields. 
    The wheat market is being weighed down by record global
supplies.
    Russian wheat export prices were broadly stable last week
amid high grain stocks despite strong export demand, analysts
said on Monday.
    A decline in Australia's wheat production could still
support prices.
    Australia's 2017/18 wheat production is expected to decline
further, the Australian Bureau of Agricultural and Resource
Economics and Sciences (ABARES) said on Tuesday, after recent
storms damaged the crop, and following a severe drought earlier
in the season that reduced yields.
    The world's fourth-largest wheat exporter is forecast to
produce 20.3 million tonnes of wheat this year, the agency said,
down more than 6 percent from its September forecast of 21.64
million tonnes and 42 percent below last year's record crop of
more than 35 million tonnes.
    Commodity funds were net buyers of CBOT soymeal and soybean
futures contracts on Monday and net sellers of corn, wheat and
soyoil futures, traders said.
    
 Grains prices at  0258 GMT
 Contract    Last     Change  Pct chg               MA 30    RSI
 CBOT wheat  435.00   -0.25   -0.06%                435.00   38
 CBOT corn   353.25   -0.25   -0.07%                353.25   43
 CBOT soy    1000.50  2.00    +0.20%                1000.50  66
 CBOT rice   12.22    $0.04   +0.33%                $12.22   51
 WTI crude   57.56    $0.09   +0.16%                $57.56   56
 Currencies                                                  
 Euro/dlr    $1.187   $1.187                                 
 USD/AUD     0.7638   0.764                                  
 
 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
and Christian Schmollinger)
  

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