November 21, 2017 / 1:26 AM / 2 months ago

GRAINS-Wheat dips for 2nd day as world inventories weigh, corn down

    SINGAPORE, Nov 21 (Reuters) - Chicago wheat futures lost
ground for a second session on Tuesday with abundant global
supplies adding pressure on prices.
    Corn slid after rising for two sessions while soybeans were
marginally lower for a second day.
    
    FUNDAMENTALS
    * U.S. and European wheat exporters are struggling to win
business as Black Sea exporters led by Russia with a record crop
dominate the global market.
    * There could be further pressure on prices as Ukrainian
winter grain crops are in a better condition than at the same
date last year thanks to favourable weather.
    * The U.S. Department of Agriculture (USDA) said 259,264
tonnes of U.S. wheat were inspected in the week ended Nov. 16,
near the low end of analyst estimates for 250,000 to 450,000
tonnes.
    * But a tender issued by Iraq, which is seeking 50,000
tonnes of wheat from the United States, Australia or Canada,
could bring fresh U.S. sales as there will not be competition
from Russia and Ukraine.
    * The USDA in a weekly report said the soybean harvest was
96 percent complete and the corn harvest was 90 percent done,
both 1 percentage point below analyst estimates.

    * Losses in soybeans were capped by dry weather in
Argentina, which could hurt yields in the top soymeal and soyoil
exporter.
    * "Drier than average conditions to dominate Argentina's
Pampas through at least end of month; early corn and soybean
area and yield could start to be negatively affected," Thomson
Reuters Agriculture Research analysts said in a note.
    * Commodity funds were net buyers of Chicago Board of Trade
corn, soybean and soymeal futures contracts on Monday and net
sellers of wheat and soyoil futures, traders said.
    
    MARKET NEWS
    * Asian stocks edged higher on Tuesday as investors took
heart from further evidence of strength in the global economy,
while the dollar hovered near a one-week high against its peers
thanks to higher U.S. yields and a floundering euro.
    
    DATA AHEAD (GMT)
1330  U.S.            National activity index           Oct
1500  U.S.            Existing home sales               Oct
    
 Grains prices at  0107 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  421.75  -0.25   -0.06%   +0.06%       428.96  43
 CBOT corn   344.00  -1.00   -0.29%   +2.23%       346.86  52
 CBOT soy    988.75  -1.25   -0.13%   +1.72%       988.16  58
 CBOT rice   12.31   -$0.07  -0.57%   +1.15%       $11.93  78
 WTI crude   56.35   -$0.07  -0.12%   -0.35%       $54.17  59
 Currencies                                                
 Euro/dlr    $1.174  $0.001  +0.07%   -0.45%               
 USD/AUD     0.7545  0.000   -0.05%   -0.26%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; editing by Richard Pullin)
  
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