February 9, 2018 / 3:27 AM / 4 months ago

GRAINS-Wheat eases, set for 4th week of gains on U.S. weather concerns

    * Wheat dips as market pauses after rising 8.2 pct in 4
weeks
    * Corn set for weekly gain one 1 pct on strong demand

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Feb 9 (Reuters) - Chicago wheat ticked lower on
Friday but the market is poised for a fourth week of gains, with
prices underpinned by concerns over U.S. weather and
short-covering by investors.
    Soybeans and corn are set to finish the week on a positive
note as prices have been underpinned in recent sessions by dry
weather in Argentina hurting yield prospects of both crops.
    The Chicago Board Of Trade most-active wheat contract
climbed nearly 2 percent for the week, taking combined gains in
four weeks to around 8 percent.
    Soybeans up 0.9 percent for the week, recouping losses
from the previous week and corn rose more than 1 percent
for the week, on track for its fourth straight weekly rally.
    "Short investors probably continue to lurk as potential
buyers but their position is probably much smaller by now," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia, referring to positioning in CBOT wheat
futures.
    Dry weather and lack of snow cover for the U.S. winter wheat
crop has supported the futures market but on the physical front
the world has abundant supplies. 
    The U.S. Department of Agriculture (USDA), in its monthly
supply-demand report on Thursday, raised its U.S. wheat ending
stocks view to 1.009 billion bushels from 989 million bushels
due to lower exports.
    For South America, the agency bumped up its estimate of the
Brazilian soybean crop to 112 million tonnes from 110 million
tonnes. It lowered its outlook for soybean production in
Argentina to 54 million bushels from 56 million tonnes.
    "The USDA has, in its usually diplomatic fashion, given
assent to the market views on both crops without getting in
front of the market," Gorey said.
    The Buenos Aires Grains Exchange shed its estimate for
soybeans to 50 million tonnes from previous forecast of 51
million tonnes, and Dan Basse, president of AgResource Co, said
some private analysts expect the harvest to fall below 50
million tonnes.
    Commodity funds were net buyers of CBOT soybean, soymeal and
corn futures on Thursday and net sellers of wheat and soyoil,
traders said.
    
 Grains prices at  0304 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  455.00  -1.25   -0.27%   -1.19%       436.43  62
 CBOT corn   365.25  -0.50   -0.14%   +0.00%       355.06  70
 CBOT soy    987.00  -0.75   -0.08%   +0.41%       975.97  54
 CBOT rice   12.35   -$0.10  -0.80%   -1.24%       $12.14  48
 WTI crude   60.50   -$0.65  -1.06%   -2.09%       $63.31  24
 Currencies                                                
 Euro/dlr    $1.226  $0.001  +0.11%   -0.03%               
 USD/AUD     0.7776  0.000   -0.04%   -0.58%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; editing by Richard Pullin)
  
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