March 26, 2018 / 3:04 AM / in a year

GRAINS-Wheat climbs to 1-week high on U.S. dryness; soybeans rebound

    * Wheat rises for 5th session as dry weather hurts U.S. crop
    * Soybeans up, but threat of U.S.-China trade war caps gains

    By Naveen Thukral
    SINGAPORE, March 26 (Reuters) - Chicago wheat rose for a
fifth consecutive session on Monday, climbing to a one-week high
as concerns over dry weather in the U.S. southern Plains
underpinned the market.
    Soybeans bounced back after closing marginally lower on
Friday, although gains were capped by the threat of a U.S.-China
trade war hurting demand for U.S. cargoes. 
    The Chicago Board of Trade most-active wheat contract
rose 0.5 percent to $4.62-3/4 a bushel by 0245 GMT, after
hitting its highest since March 19 at $4.63-3/4 a bushel.
    Soybeans gained 0.7 percent to $10.35-1/4 a bushel and
corn advanced 0.7 percent to $3.80 a bushel.
    The wheat market is finding support in dry weather in key
U.S. winter crop regions.
    "U.S. hard red winter (HRW) wheat crops remain at risk of
falling yields," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia. "The HRW crop
regions did get a little rain last week but not enough where it
was most needed."
     Soybeans closed marginally lower on Friday on worries about
trade issues with China, the world's top soybean importer, a day
after U.S. President Donald Trump announced tariffs on up to $60
billion of Chinese goods.
    However, soybeans were not on China's list of American goods
that could be subject to extra duties in response to U.S.
    China is projected to import 97 million tonnes of soybeans
in the 2017/18 marketing year and 100 million in 2018/19,
according to the U.S. Department of Agriculture.
    Those totals cannot be met by South American suppliers
alone, analysts say, making it less likely that China would
retaliate against U.S. soybeans.  
    Soybean prices have drawn support from crop losses in
drought-hit Argentina, the world's top soymeal exporter. The
Buenos Aires grains exchange last week cut its estimate of the
country's soy harvest to 39.5 million tonnes from 42 million
tonnes previously.
    The focus is shifting to U.S. growing season. Farmers are
likely to plant a record 91.5 million acres of soybeans in 2018
and 90 million acres of corn, according to a Farm Futures survey
of nearly 1,400 growers released on Friday.
    Large speculators cut their net long position in CBOT corn
futures in the week to March 20, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and cut their net long position
in soybeans.
 Grains prices at  0245 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  462.75   2.50    +0.54%   +1.54%       477.67   42
 CBOT corn   380.00   2.75    +0.73%   +1.06%       380.69   55
 CBOT soy    1035.25  7.00    +0.68%   +0.53%       1043.45  51
 CBOT rice   12.34    -$0.02  -0.16%   +0.12%       $12.34   55
 WTI crude   65.53    -$0.35  -0.53%   +1.91%       $62.14   69
 Euro/dlr    $1.237   $0.002  +0.14%   +0.55%                
 USD/AUD     0.7722   0.003   +0.34%   +0.40%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral
Editing by Kenneth Maxwell)
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