October 24, 2019 / 3:23 AM / 21 days ago

GRAINS-Wheat extends gains on strong demand, tightening supplies

    * Lower wheat output in Australia, Argentina support prices
    * Strong demand from wheat importers in Middle East, Africa

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Oct 24 (Reuters) - Chicago wheat futures rose for
a second session on Thursday, buoyed by strong demand and
tightening global supplies.
    Soybeans rose too but gains were capped by a lack of Chinese
buying and U.S. harvest pressure.
    The Chicago Board of Trade's (CBOT's) most-active wheat
contract was up 0.4% at $5.23 a bushel, as of 0307 GMT,
soybeans gained 0.2% at $9.35-1/2 a bushel and corn
rose 0.5% to $3.89-1/2 a bushel. 
    "The global trend is towards tightening of wheat supplies,
although the market remains reasonably well supplied," said Phin
Ziebell, agribusiness economist at National Australia Bank. "We
have seen pretty strong demand recently and buyers are paying
higher prices."
    Wheat prices have been supported by expectations of lower
production in the Southern Hemisphere.
    Australia's wheat production is expected to drop to 15.5
million tonnes, National Australia Bank said last week as it cut
its forecast to well below recent market estimates.
    Grain importers in the Middle East and North Africa have
been snapping up wheat cargoes, underpinning prices.
    Beijing on Tuesday offered major Chinese and international
soybean processors waivers that would exempt the companies from
steep tariffs on imports of up to 10 million tonnes of U.S.
soybeans, according to two people briefed on the matter.

    The news, however, failed to unleash a torrent of soybean
buying by the world's top soybean importer.
    Commodity funds were net buyers of CBOT wheat, corn, soybean
and soymeal futures contracts on Wednesday and net sellers of
soyoil futures, traders said.
    
 Grains prices at 0307 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  523.00  2.25    +0.43%   +0.97%       498.65  62
 CBOT corn   389.50  1.75    +0.45%   +0.39%       383.65  50
 CBOT soy    935.50  1.75    +0.19%   +0.16%       913.18  64
 CBOT rice   11.67   $0.00   -0.04%   -0.30%       $11.97  31
 WTI crude   55.46   -$0.51  -0.91%   +2.40%       $55.14  
 Currencies                                                
 Euro/dlr    $1.114  $0.001  +0.06%   +0.11%               
 USD/AUD     0.6847  -0.001  -0.09%   -0.12%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips
and Rashmi Aich)
  
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