May 4, 2018 / 1:49 AM / 2 months ago

GRAINS-Wheat drops from 9-month high, set to finish the week up 7 pct

    SYDNEY, May 4 (Reuters) - U.S. wheat futures fell on Friday, retreating from a nine-month high hit in the previous session, though the grain is poised to finish the week up more than 7 percent amid concerns over
the condition of the North American crop.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board of Trade gained more than 7 percent this week, on track to post their biggest weekly gain in nine weeks.
    * Wheat on Thursday hit a high of $5.38-1/2 a bushel, the highest since July 2017.
    * The most soybean futures slipped 0.5 percent for the week after posting gains of 1.5 percent in the previous week.
    * The most active corn futures climbed more than 2 percent for the week. Corn gained more than 8 percent over the last fortnight. 
    * Scouts on a Wheat Quality Council crop tour projected the winter wheat yield in Kansas, the top U.S. wheat state, at 37.0 bushels per acre. 
    * The scouts pegged Kansas wheat production at 243.3 million bushels, potentially the smallest crop since 1989, reflecting the impact of drought.
    * Market watching for any sign of positive progress at meeting U.S and Chinese trade officials.
    * A breakthrough deal to fundamentally change China's economic policies is viewed as highly unlikely during the two days of talks, though a package of short-term Chinese measures could delay Washington's decision
to impose tariffs on about $50 billion worth of Chinese exports. 
         
    MARKET NEWS  
    * The U.S. dollar fell in choppy trading on Thursday as investors took profits from a rally that sent the greenback to its highest levels of the year and awaited payrolls data for April.  
    * Oil prices edged up on Friday, extending the previous session's modest gains as looming geopolitical risks from possible new U.S. sanctions against Iran supported the market.  
    * The S&P 500 ended lower on Thursday after a choppy session as disappointing earnings reports from several companies offset strong economic data.  
    
    DATA AHEAD (GMT)
0145  China             Caixin services PMI               April
0645  France            Trade data                        March
0750  France            Markit services PMI               April
0755  Germany           Markit services PMI               April
0800  Euro zone         Markit services PMI final         April
0900  Euro zone         Retail sales                      March
1230  U.S.              Nonfarm payrolls                  April
1230  U.S.              Unemployment rate                 April
        
 Grains prices at  0107 GMT
 Contract       Last   Change  Pct chg  Two-day chg    MA 30  RSI
 CBOT wheat   534.25    -3.75   -0.70%       +1.42%   489.61   81
 CBOT corn    407.00    -1.00   -0.25%       +0.49%   394.89   77
 CBOT soy    1048.00    -5.25   -0.50%       +0.48%  1047.42   53
 CBOT rice     13.01   -$0.01   -0.08%       -0.19%   $12.99   42
 WTI crude     68.42   -$0.01   -0.01%       +0.72%   $66.36   59
 Currencies                                                      
 Euro/dlr     $1.198  -$0.001   -0.05%       +0.26%              
 USD/AUD      0.7536    0.001   +0.09%       +0.56%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 

 (Reporting by Colin Packham, Editing by Sherry Jacob-Phillips)
  
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