June 15, 2020 / 3:38 AM / 17 days ago

GRAINS-Wheat drops on ample supplies, Chinese buying limits losses in soybeans

* U.S. forecasts all-time high global wheat inventories

* Soybeans dip after 3 days of gains on strong Chinese demand (Adds details on Speculators positions, quote)

By Naveen Thukral

SINGAPORE, June 15 (Reuters) - Chicago wheat futures fell on Monday, pressured by abundant supplies forecast in a U.S. government report last week.

Soybeans marginally declined after closing higher in the last three sessions on the back of strong Chinese demand.

“The market is still absorbing the shock from the U.S. Department of Agriculture’s (USDA) bigger global inventory numbers,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring to the drop in wheat prices.

The most-active wheat contract on the Chicago Board Of Trade (CBOT) was down 0.3% at $5.00-1/2 a bushel by 0318 GMT.

Soybeans slid 0.2% to $8.69-1/2 a bushel and corn lost 0.2% to $3.29-1/2 a bushel.

Higher global wheat supplies are weighing on the market. The USDA raised world ending stocks to a record high 316.1 million tonnes.

Leading Russian consultancies revised forecasts for this year’s Russian wheat harvest, tempering concerns about the effects of a dry spring.

Consultancy IKAR has raised its estimate for Russia’s 2020/21 wheat exports by 1 million tonnes to 35 million tonnes after it upgraded its crop estimate, it said on Thursday.

China has stepped up purchases of U.S. beans in recent weeks, supporting prices.

U.S. soybean crushings likely edged up slightly in May despite narrowing processor margins as export demand for soymeal remained strong, according to analysts polled ahead of a monthly National Oilseed Processors Association report due on Monday.

Large speculators increased their net short position in CBOT corn futures in the week to June 9, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans. (Reporting by Naveen Thukral; Editing by Amy Caren Daniel and Krishna Chandra Eluri)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below