May 22, 2018 / 3:42 AM / 3 months ago

GRAINS-Wheat drops for second day on U.S. rain forecast; soybeans ease

    * Wheat loses more ground as U.S. rains seen helping winter
crop
    * Soybeans ease after strong gains, rapid pace of U.S.
planting

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 22 (Reuters) - Chicago wheat futures slid for
a second session on Tuesday with prices being weighed down by
forecasts of rains in the U.S. southern Plains, which could
bring relief to the drought-hit winter crop. 
    Soybeans edged lower, retreating from an 11-day high after
the U.S. Department of Agriculture said planting was progressing
ahead of market expectations, easing fears about possible yield
losses.
    The Chicago Board of Trade most-active wheat contract
was down 0.5 percent at $5.04-3/4 a bushel, by 0319 GMT, having
closed down 2.3 percent on Monday.
    Soybeans gave up 0.5 percent to $10.20-1/4 a bushel,
having firmed 2.3 percent in the previous session, when prices
hit $10.27 a bushel, their highest since May 10. 
    Corn lost 0.4 percent to $4.01 a bushel.
    "U.S. climate forecasters are expecting the drought
conditions to ease in the Plains, which might improve wheat crop
yields," said one India-based agricultural commodities analyst.
    "Demand for U.S. wheat remains weak and the strength in the
U.S. dollar is not helping."
    Rainy weather in the drought-hit Plains wheat belt pressured
prices for the grain.
    The U.S. Department of Agriculture said 81 percent of the
corn crop had been planted as of Sunday along with 56 percent of
the soybean crop, both slightly above analysts' estimate.

    On Monday, the grain complex was supported after U.S.
Treasury Secretary Steven Mnuchin said the U.S. trade war with
China is "on hold" after the world's two largest economies
agreed to drop their tariff threats while they work on a wider
trade agreement.
    Traders are anticipating soybeans to be among the greatest
beneficiaries of the easing trade tensions.
    Still, cheaper supplies from South America are expected to
keep a lid of U.S. prices.
    Orders for nearly 1 million tonnes of U.S. soybean exports
were cancelled last week, according to U.S. government data, as
cheap supplies from Brazil made U.S. cargoes less attractive to
buyers.
    Commodity funds were net buyers of CBOT soybean, soymeal and
soyoil futures contracts on Monday, and net sellers of wheat and
corn, traders said. Estimates for fund activity in corn ranged
from selling 10,000 contracts to buying 2,500.
    
 Grains prices at 0319 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  504.75   -2.50   -0.49%   +1.46%       500.68   50
 CBOT corn   401.00   -1.75   -0.43%   +1.45%       397.81   58
 CBOT soy    1020.25  -5.00   -0.49%   +2.54%       1035.67  53
 CBOT rice   12.23    -$0.01  -0.04%   -2.20%       $12.94   31
 WTI crude   72.46    $0.22   +0.30%   +1.66%       $69.20   73
 Currencies                                                  
 Euro/dlr    $1.178   $0.001  +0.08%   -0.08%                
 USD/AUD     0.7577   0.007   +0.88%   +0.91%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

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