March 21, 2019 / 6:37 AM / 3 months ago

GRAINS-Wheat eases after rally, U.S. planting delays support prices

    * Wheat dips after climbing to 3-week high on Wednesday
    * Adverse weather in U.S. Plains supports prices
    * Upside potential in wheat prices limited by ample supplies

 (Adds chart, updates prices)
    By Naveen Thukral
    SINGAPORE, March 21 (Reuters) - Chicago wheat futures slid
on Thursday as the market took a breather after climbing to a
three-week high in the last session when prices were underpinned
by concerns over planting delays in the U.S. Plains amid recent
adverse weather.
    Soybeans rose for a second consecutive session on hopes for
progress in U.S. trade talks with China, while corn edged lower
after closing largely unchanged in the last session. 
    The most-active wheat contract on the Chicago Board of Trade
 was down 0.3 percent at $4.63-1/2 a bushel by 0629 GMT,
having closed up 1.8 percent on Wednesday when prices marked
their highest since Feb. 28 at $4.65 a bushel.
    Soybeans added 0.1 percent to $9.06-3/4 a bushel,
while corn lost 0.1 percent to $3.71-1/4 a bushel.
    "There is some support for the wheat market as we are
witnessing adverse weather in parts of the U.S. grain belt,"
said Phin Ziebell, an agribusiness economist at National
Australia Bank.
    "Although I am not sure a sustained rally is possible based
on limited weather concerns."
    Heavy snows and the anticipation of floods in the U.S.
northern Plains spring wheat belt, particularly in top producer
North Dakota, have raised the risk of delays in planting the
2019 crop. Seeding normally begins in April.
    On the technical front, CBOT May wheat may gain more
to $4.70-1/4 per bushel, as it has broken a resistance at $4.63.

    Brazil, one of the world's largest wheat importers, is
expected to buy less of the cereal in the new season that starts
in August because of a favourable outlook for local production,
broker and analyst INTL FCStone said on Wednesday.
    Soybean prices firmed on technical buying and hopes for
progress in U.S. trade talks with China, the world's top
importer of the oilseed.
    However, U.S. President Donald Trump warned on Wednesday
that the United States may leave tariffs on Chinese goods for a
"substantial period" to ensure that Beijing complies with any
trade agreement.
    Commodity funds were net buyers of CBOT wheat, soybeans and
soymeal futures contracts on Wednesday and net sellers of corn
and soyoil contracts.
 Grains prices at  0629 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  463.50  -1.25   -0.27%   +1.48%       477.43  57
 CBOT corn   371.25  -0.25   -0.07%   -0.07%       376.03  64
 CBOT soy    906.75  0.75    +0.08%   +0.11%       913.53  60
 CBOT rice   10.96   $0.02   +0.14%   +2.24%       $10.57  78
 WTI crude   60.23   $0.00   +0.00%   +1.93%       $56.22  
 Euro/dlr    $1.142  $0.008  +0.73%   +0.83%               
 USD/AUD     0.7141  0.004   +0.55%   +0.76%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
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