April 16, 2018 / 3:13 AM / 3 months ago

GRAINS-Wheat drops to 10-day low as U.S. weather outlook improves

    * Wheat falls 1 percent to lowest since April 6 on U.S.
weather
    * Corn eases for 2nd day, soybeans unchanged after Friday's
drop

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, April 16 (Reuters) - Chicago wheat futures slid 1
percent on Monday to a 10-day low as forecasts of rains across
key U.S. winter crop areas eased fears about yield losses
following a severe drought.
    Corn dropped for a second day while soybeans were little
changed after closing lower on Friday. 
    The most-active wheat contract on the Chicago Board Of Trade
 lost 1 percent to $4.68 a bushel by 0246 GMT. The market
dropped earlier in the session to a low of $4.65-1/4 a bushel,
the weakest since April 6.
    Corn gave up 0.5 percent to $3.84-1/2 a bushel, having
closed down 0.6 percent in the previous session while soybeans
 were almost flat at $10.54 a bushel, after closing down
0.6 percent on Friday.
    Rains forecast across U.S. Plains are expected to provide
much needed relief to crops suffering from dry weather.
    "Weekend snow storms in the U.S. largely missed the driest
hard red winter wheat regions, so no moisture boost there," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia. "The market can see another rain event this
week in weather model projections."
    Lack of demand for U.S. wheat is adding pressure on prices.
The U.S. Department of Agriculture (USDA) on Thursday reported
export sales for old and new crop U.S. wheat in the latest week
at 188,700 tonnes, below trade expectations.

    Lower soybean production in Argentina is expected to keep a
floor under the oilseed market.
    Argentina, the world's No. 3 soybean producer, has struggled
with a drought that has slashed its crop. However, yield
prospects are bright in neighbouring Paraguay and Brazil.
    Paraguay will produce just over 10 million tonnes of
soybeans in 2017/18, slightly less than a year earlier, the
national export chamber CAPECO said on Thursday.
    Large speculators raised their net long position in CBOT
corn futures in the week to April 10, 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, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.
    
 Grains prices at  0246 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  468.00   -4.50   -0.95%   -2.70%       472.52   44
 CBOT corn   384.50   -1.75   -0.45%   -1.09%       384.53   47
 CBOT soy    1054.00  -0.25   -0.02%   -0.64%       1041.56  59
 CBOT rice   13.07    -$0.04  -0.34%   +1.40%       $12.49   79
 WTI crude   66.82    -$0.57  -0.85%   -0.37%       $63.62   64
 Currencies                                                  
 Euro/dlr    $1.234   $0.001  +0.06%   +0.10%                
 USD/AUD     0.7775   0.001   +0.12%   +0.27%                
 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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