March 13, 2019 / 3:59 AM / 13 days ago

GRAINS-Wheat eases after biggest one-day gain in 7 months, supplies weigh

    * Wheat dips after Tuesday's 5.7 pct rally, biggest since
July
    * Technicals support, ample supplies seen keeping lid on
prices

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, March 13 (Reuters) - Chicago wheat futures slid
on Wednesday as the market took a breather after the previous
session's biggest one-day gain in seven months which was
triggered by fund buying and technicals.
    Soybeans rose for a second straight session but worries
about Chinese demand following the spread of African swine fever
weighed on prices.
    The most-active wheat contract on the Chicago Board Of Trade
 was down 0.6 percent at $4.50-1/2 a bushel, as of 0334
GMT. In the previous session, it rose 5.7 percent, the highest
one-day gain since late July.
    Soybeans gained 0.1 percent to $8.98 a bushel and corn
 was up 0.1 percent at $3.66 a bushel.
    "We think prices had fallen too low that is why we saw
Tuesday's rally," said Ole Houe, director of advisory services
at brokerage IKON Commodities in Sydney.
    "Supply pressure is likely to prevent a rally but it is
important that the technicals support a turnaround."
    Wheat is expected to gain more to $4.64 a bushel, the 38.2
percent retracement of the downtrend from $5.24 to $4.27, driven
by a wave (4), according to Wang Tao, a Reuters market analyst
for commodities and energy technicals.
    "Five smaller waves make up the current bounce, so far, only
three waves have unfolded."
    The U.S. Department of Agriculture said on Monday that
good-to-excellent ratings for winter wheat in Kansas, the
largest U.S. production state for the crop, rose 2 percentage
points to 51 percent in the latest week. Ratings also rose in
Oklahoma, but fell in Texas.
    For soybeans, concerns over Chinese demand are weighing on
the market.
    China, home to the world's largest hog herd, has reported
112 outbreaks of the highly contagious disease in 28 provinces
and regions since August, although the vast majority were found
on farms, with one at a slaughterhouse.
    Private analytics firm IEG Vantage, formerly known as
Informa Economics IEG, on Tuesday projected U.S. 2019 soybean
plantings at 85.494 million acres, down from its Feb. 14
forecast of 86.044 million acres.
    The firm forecast 2019 soybean production at 4.340 billion
bushels based on a yield of 51.2 bushels per acre, according to
an IEG client note seen by Reuters.
    The United States and China may be in the final weeks of
discussions to hammer out a deal to ease their tit-for-tat
tariffs dispute, U.S. Trade Representative Robert Lighthizer
said on Tuesday.
    The trade war has curbed U.S. soybean exports to China.
    Commodity funds were net buyers of CBOT corn, wheat,
soybean, soymeal and soyoil futures contracts on Tuesday,
traders said.
    
 Grains prices at  0334 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  450.50  -2.50   -0.55%   +2.50%       491.18  13
 CBOT corn   366.00  0.25    +0.07%   +0.48%       379.43  33
 CBOT soy    898.00  1.00    +0.11%   +0.25%       919.09  39
 CBOT rice   10.75   $0.02   +0.14%   -0.65%       $10.57  60
 WTI crude   57.14   $0.27   +0.47%   +1.91%       $55.26  
 Currencies                                                
 Euro/dlr    $1.128  $0.004  +0.33%   +0.41%               
 USD/AUD     0.7055  -0.001  -0.20%   +0.14%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
    
 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  
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