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GRAINS-Wheat drops amid record Black Sea supplies, soybeans near 1-week low
September 12, 2017 / 3:40 AM / 11 days ago

GRAINS-Wheat drops amid record Black Sea supplies, soybeans near 1-week low

    * Second straight losing session in view
    * Soybeans near lowest since Sept. 5
    * Corn falls after 2-day gain

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 12 (Reuters) - Chicago wheat futures slid on
Tuesday, heading for a second straight losing session with
pressure from record supplies from the Black Sea region making
it difficult for U.S. exporters to win business.
    Soybeans dipped for a fourth consecutive session - although
losses were marginal - on expectation of a reduction in U.S.
yields, while corn fell for the first time in three sessions as
markets await key supply-demand reports to be issued by the U.S.
Department of Agriculture (USDA) at 1600 GMT.
    The most-active wheat contract on the Chicago Board Of Trade
 eased 0.2 percent to $4.34 a bushel by 0257 GMT, having
closed down 0.7 percent on Monday, when prices hit a low of
$4.31-1/2 a bushel - the weakest since Aug. 31.
    Soybeans were 0.2 percent lower at $9.58-1/4 a bushel
after dropping on Monday to $9.56-3/4 a bushel, the lowest since
Sept. 5. Corn gave up 0.3 percent to $3.56-1/2 a bushel.
    "The market lacks evidence that U.S. (wheat) exports are
responding to more competitive U.S. prices," said Tobin Gorey,
director of agricultural strategy at Commonwealth Bank of
Australia.  
    "We still think the evidence will emerge but understand the
doubts."
    Losses in wheat futures came despite Australia lowering its
crop production forecast. The Australian government lowered its
estimate of the country's 2017/18 wheat crop to 21.64 million
tonnes, an eight-year low, from a March forecast of 23.98
million.
    Russia's wheat production has climbed to an all-time high
while Ukraine is harvesting a large crop. These two countries
and other exporters in the northern hemisphere are expected to
keep global markets well supplied.
    Meanwhile analysts expect the USDA to trim its U.S. 2017
yield estimates for corn and soybeans.
    The USDA in a weekly report said the U.S. corn harvest was 5
percent complete, near the five-year average of 6 percent and
ahead of the average trade estimate of 4 percent. But crop
maturity lagged in key states.
    In Iowa, the top U.S. corn producer, USDA said 15 percent of
the crop was mature, below the five-year average of 28 percent.
The corn crop in the No. 2 producer, Illinois, was 26 percent
mature, compared to the five-year average of 41 percent.

    
 Grains prices at  0257 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  434.00  -0.75   -0.17%   -0.86%       451.47  44
 CBOT corn   356.50  -1.00   -0.28%   -0.07%       365.01  54
 CBOT soy    958.25  -1.75   -0.18%   -0.39%       950.81  55
 CBOT rice   12.65   -$0.01  -0.04%   -0.55%       $12.63  47
 WTI crude   48.04   -$0.03  -0.06%   +1.18%       $48.10  51
 Currencies                                                
 Euro/dlr    $1.196  $0.001  +0.09%   -0.59%               
 USD/AUD     0.8011  -0.002  -0.21%   -0.58%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Kenneth Maxwell)
  

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