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GRAINS-Wheat eases for second day on ample global supply, soy prices firm
September 19, 2017 / 3:45 AM / in a month

GRAINS-Wheat eases for second day on ample global supply, soy prices firm

    * Wheat extends losses, focus turns to Egypt import tender
    * Soybeans up on strong demand, gains capped by ample supply

 (Adds comment, detail, graphic)
    By Naveen Thukral
    SINGAPORE, Sept 19 (Reuters) - Chicago wheat futures lost
more ground on Tuesday, falling for a second consecutive session
in the face of abundant global supplies.
    Soybean prices ticked up on strong demand, although
expectations of near-record U.S. production kept a lid on the
market.
    The Chicago Board of Trade most-active wheat contract
had eased 0.2 percent to $4.42-1/2 a bushel by 0305 GMT, while
soybeans added 0.1 percent to $9.68-1/2 a bushel. Corn
 gained 0.1 percent to $3.51-3/4 a bushel.
    "It is going to be hard for prices to rally because of the
abundance of global oilseed and grains supplies," said Simon
Clancy, a broker at IKON Commodities in Sydney. 
    "Australian prices are higher just to ensure enough grains
remain at home for domestic consumption."
    The Australian government has lowered its estimate of the
country's 2017/18 wheat crop to 21.64 million tonnes, an
eight-year low, from a March forecast of 23.98 million.

    But globally there are plenty of wheat supplies.
    Some focus is shifting to a tender issued by Egypt's General
Authority for Supply Commodities to buy an unspecified amount of
wheat from global suppliers for shipment from Oct. 21-31.
Results are expected later on Tuesday.
    Wheat exporters from the Black Sea region and Europe have in
recent years won the bulk of the tender business coming from
Egypt, the world's biggest importer.
    The U.S. Department of Agriculture (USDA) in its weekly crop
progress report said the U.S. corn harvest was 7 percent
complete, behind the five-year average of 11 percent. 
    The soybean harvest was 4 percent complete, close to its
average pace of 5 percent, the agency said after the market
closed on Monday.
    U.S. and global supplies of corn remain ample. The USDA last
week forecast a U.S. corn yield of 169.9 bushes per acre and
2017-18 ending stocks at a hefty 2.3 billion bushels.
    Soybean prices have been underpinned by strong demand. The
USDA through its daily reporting system said on Monday that
private exporters sold a total of 387,000 tonnes of U.S.
soybeans, including 261,000 tonnes to China, the world's top soy
buyer. 
    Money managers reversed their six-week selling streak across
Chicago-traded grains and oilseeds in the week ended Sept. 12
even amid some relatively bearish figures from the USDA. 
 Grains prices at  0305 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  442.50  -1.00   -0.23%   -1.45%       444.76  65
 CBOT corn   351.75  0.25    +0.07%   -0.85%       360.27  58
 CBOT soy    968.50  0.75    +0.08%   -0.03%       950.73  64
 CBOT rice   12.87   -$0.02  -0.16%   +0.43%       $12.66  68
 WTI crude   49.94   $0.03   +0.06%   +0.10%       $48.18  67
 Currencies                                                
 Euro/dlr    $1.197  $0.001  +0.11%   +0.20%               
 USD/AUD     0.7966  0.001   +0.08%   -0.44%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

    
 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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