September 28, 2017 / 2:56 AM / 9 months ago

GRAINS-Wheat eases from 7-wk high, market eyes USDA report

    * Wheat dips after climbing 1.7 percent on Wednesday
    * Corn, soybeans give up gains as harvest pressure looms

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 28 (Reuters) - Chicago wheat futures edged
lower on Thursday as the market took a breather after climbing
to its highest in more than seven weeks in the previous session
on short-covering and expectations of lower U.S. production.
    Corn and soybeans eased in Asian trading, giving up gains in
positioning ahead of a U.S. crop report due on Friday.
    The Chicago Board Of Trade most-active wheat contract
was down 0.2 percent at $4.60-3/4 a bushel by 0230 GMT, having
closed up 1.7 percent on Wednesday when prices hit a high of
$4.62-3/4 a bushel - the highest since Aug. 8.
    Soybeans were down 0.5 percent at $9.61 a bushel,
having firmed 0.2 percent on Wednesday, and corn gave up
0.3 percent to $3.53 a bushel, having closed up 0.5 percent in
the previous session.
    "Investors still have hefty short position (in wheat) that
probably has a fading rationale that offers an immediate source
of buying," said Tobin Gorey, director of agricultural strategy
at Commonwealth Bank of Australia.
    "Sellers can afford to be more patient. Any slowing in
exports due to higher prices would not be broadly apparent to
the market for at least another fortnight."
    Commodity funds were net buyers of CBOT corn, wheat, soybean
and soymeal futures contracts on Wednesday, traders said, and
were net sellers of soyoil futures.
    The U.S. Department of Agriculture is scheduled to issue the
small grains report at 1600 GMT on Friday and analysts expect
the government to lower its estimate of U.S. 2017 wheat
    Analysts expect the USDA to report U.S. corn stocks as of
Sept. 1 at 2.353 billion bushels, which would be the largest
since 1988 if realized.
    Soybeans are under pressure as a spell of unseasonably hot
weather over the last week likely helped advance crop maturity,
easing fears of harvest delays.
    Argentine farmers are expected to harvest 54 million tonnes
of soy in the 2017/18 season, down from 57.5 million tonnes in
2016/17, as growers expand wheat and corn sowing, the Buenos
Aires Grains Exchange said on Wednesday.
    The soy planting area in the 2017/18 season is seen at 18.1
million hectares, down from 19.2 million in 2016/17, the
exchange said in a presentation to grains industry leaders.
 Grains prices at  0230 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  460.75  -0.75   -0.16%   +1.54%       441.78  75
 CBOT corn   353.00  -1.00   -0.28%   +0.21%       354.81  57
 CBOT soy    961.00  -4.50   -0.47%   -0.26%       956.18  46
 CBOT rice   11.80   -$0.10  -0.84%   -1.42%       $12.59  22
 WTI crude   51.99   -$0.15  -0.29%   +0.21%       $48.89  72
 Euro/dlr    $1.174  $0.000  -0.03%   -0.43%               
 USD/AUD     0.7832  -0.002  -0.20%   -0.68%               
 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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