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GRAINS-U.S. wheat moves off contract lows, but ample supply weighs
August 18, 2017 / 2:45 AM / a month ago

GRAINS-U.S. wheat moves off contract lows, but ample supply weighs

* December wheat contract not far above contract low

* Corn near 11-month low, soybeans up slightly (Adds analyst comment, updates prices)

By Manolo Serapio Jr

MANILA, Aug 18 (Reuters) - U.S. wheat futures climbed off contract lows on Friday, but gains were modest as investors remained largely bearish towards the grain amid ample global supply.

While weekly exports of U.S. wheat rose 37 percent from the prior week as prices dropped, Commonwealth Bank of Australia analyst Tobin Gorey said it “will take more than one number” to convince the market about appetite for U.S. cargoes.

“Moreover if the investors selling are only tracking momentum then that will not stop them selling more,” Gorey said in a note.

Wheat for December delivery on the Chicago Board of Trade was up 0.5 percent at $4.42-3/4 a bushel by 0222 GMT, having touched a contract low of $4.38-3/4 on Thursday.

A tender by Egypt on Wednesday drew offers totalling around 1 million tonnes of Russian wheat, underlining big supplies from Russia. Egypt, the world’s largest wheat importer, booked 295,000 tonnes of Russian wheat and 60,000 tonnes of Ukrainian wheat.

“Grain prices will trade largely sideways in the coming weeks as wheat harvests are nearly finished and weather conditions remain favourable for upcoming northern hemisphere corn and soybean harvests,” BMI Research wrote in a note.

The most-traded CBOT corn contract was up 0.1 percent at $3.64-3/4 a bushel. On Wednesday, it hit its weakest since September 2016 at $3.63-1/4.

Chicago soybeans gained 0.2 percent to $9.35-1/4 per bushel.

U.S. soybean export sales have been languishing for much of the summer following a record-shattering Brazilian crop, but demand for U.S. shipments is gathering pace, led by renewed appetite from top importer China, traders and analysts said.

Reporting by Manolo Serapio Jr.; Editing by Joseph Radford and Richard Pullin

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