January 4, 2018 / 4:09 AM / 6 months ago

GRAINS-Wheat eases after 2-session rally, market eyes U.S. weather

    * Wheat falls 0.4 pct after rallying 2.1 pct in last two
    * Freezing weather across U.S. Plains seen hitting yields

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 4 (Reuters) - Chicago wheat futures edged
lower on Thursday, easing from a one-month high touched in the
previous session, with focus on adverse weather across a key
U.S. producing region which could reduce yields.
     Soybeans dipped after gaining for the last two sessions
while corn was largely unchanged.
    The most-active wheat contract on the Chicago Board Of Trade
 gave up 0.4 percent to $4.34-1/4 a bushel by 0348 GMT
after hitting its highest since Dec. 4 at $4.37 a bushel on
    Soybeans fell 0.1 percent to $9.67-1/2 a bushel,
having firmed 0.4 percent on Wednesday and corn was
unchanged at $3.53 a bushel.
    The wheat market has drawn support amid sub-zero
temperatures across the U.S. Plains and as forecasts for
continued dryness raised the prospect of a reduced harvest.
    The U.S. Agriculture Department said on Tuesday afternoon
that winter wheat in Kansas, the state that is the biggest 
producer of the grain, was rated 37 percent good to excellent,
down from 51 percent at the end of November. 
    A year ago, the state's winter wheat crop was rated 44
percent good to excellent.
    "It is extremely cold in U.S. Plains and it is causing
concerns about the crop," said one India-based agricultural
commodities analyst at an international bank.
    "But there is a lot of inventory worldwide, so there is no
immediate concern about supplies."
    The soybean market was underpinned by dry weather in the
world's third largest supplier Argentina.
    Argentina's bread-basket province of Buenos Aires will
remain mostly dry in the days ahead, meteorologists said on
Tuesday, after reporting scant rain over the weekend.

    Commodity funds were net buyers of CBOT soybean, soyoil,
wheat and soymeal futures contracts on Wednesday. They were net
sellers of corn, traders said.
 Grains prices at 0348 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  434.25  -1.75   -0.40%   +0.17%       427.31  69
 CBOT corn   353.00  0.00    +0.00%   -0.07%       352.22  60
 CBOT soy    967.50  -1.25   -0.13%   +0.29%       986.97  47
 CBOT rice   11.62   -$0.02  -0.21%   -1.32%       $12.25  23
 WTI crude   61.89   $0.26   +0.42%   +2.52%       $58.25  84
 Euro/dlr    $1.201  $0.000  +0.02%   -0.36%               
 USD/AUD     0.7828  -0.001  -0.09%   -0.01%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Biju Dwarakanath)
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