November 20, 2019 / 3:59 AM / 23 days ago

GRAINS-Wheat at 1-week high on U.S. crop rating, tightening supplies

    * Wheat gains for third session on lower U.S. winter crop rating
    * Tightening supplies in Southern Hemisphere support prices
    * Corn futures dip, giving up some of last session's gains

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 20 (Reuters) - Chicago wheat futures climbed for a third consecutive session on
Wednesday to a one-week top as declining condition of the U.S. crop and tightening supplies in the
Southern Hemisphere underpinned prices.
    Corn lost ground, giving up some of Tuesday's gains, while soybeans advanced for a second
    The most-active wheat contract on the Chicago Board Of Trade was up 0.1% at $5.12-1/2 a
bushel, as of 0336 GMT, after hitting its highest since Nov. 12 at $5.17-1/4 a bushel.
    Corn gave up 0.1% at $3.69-1/2 a bushel, having closed about 0.6% firmer in the previous
session, while soybeans added 0.2% at $9.13-1/2 a bushel, having closed 0.1% higher on
    The U.S. Department of Agriculture (USDA) late Monday rated 52% of the U.S. winter wheat crop
as good-to-excellent, down from 54% the previous week. Analysts on average had expected a decline
of only one percentage point.
    "The wheat crop is Australia keeps shrinking and we have had a downgrade in production outlook
for Argentina," said a Singapore-based grains trader. 
    Argentina's 2019/20 wheat harvest is estimated at 18.5 million tonnes, down from a previous
forecast of 18.8 million tonnes, due to an outbreak of harmful Fusarium fungi, the Buenos Aires
Grains Exchange said in a report last week.
    Commodity brokerage INTL FCStone earlier this month said a poll of its clients estimated
Australian wheat production during the 2019/20 season would be nearly 20% lower than official
    The corn market has been supported by strong demand for U.S. supplies. 
    The USDA on Tuesday said private exporters sold 191,000 tonnes of U.S. corn to unknown
destinations, following sales of an additional 132,000 tonnes a day earlier.
    "Brazil has priced itself out of the market but worldwide there are ample supplies of corn,"
the trader said. "We don't see buyers chasing higher prices."
    The USDA had said on Monday that the U.S. corn harvest was 76% complete, below analysts'
forecasts of 77% and well below the five-year average of 92%. 
    The agency also stated that the U.S. soybean harvest was 91% complete, matching an average of
trade expectations but below the five-year average of 95%.
    Commodity funds were net buyers of CBOT corn, wheat, soyoil and soymeal futures contracts on
Tuesday and net even in soybean futures, traders said.

 Grains prices at 0336 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  512.50  0.50    +0.10%   +1.94%       512.33  54
 CBOT corn   369.50  -0.50   -0.14%   -0.47%       384.14  29
 CBOT soy    913.50  2.00    +0.22%   -0.19%       936.38  49
 CBOT rice   12.06   -$0.04  -0.29%   +1.39%       $12.04  68
 WTI crude   55.32   $0.11   +0.20%   -3.03%       $55.54  
 Euro/dlr    $1.107  $0.007  +0.62%   +0.61%               
 USD/AUD     0.6818  -0.002  -0.28%   -0.32%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
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