February 1, 2018 / 1:39 AM / 6 months ago

GRAINS-Wheat extends losses despite lingering threat of adverse weather

    SYDNEY, Feb 1 (Reuters) - U.S. wheat futures fell for a
second session on Thursday to extend two-day losses to 2 percent
as traders banked profits after the grain hit a more than a
four-month high on concerns over the impact of dry weather in
the United States.
             
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board Of
Trade were down 0.7 percent at $4.48-1/2 a bushel by 0117
GMT, having closed down 1.2 percent on Wednesday. 
    * The most active soybean futures were down 0.4
percent at $9.92 a bushel, having closed down 0.5 percent on
Wednesday.
    * The most active corn futures were down 0.2 percent
to $3.60-3/4 a bushel, having closed unchanged in the previous
session.
    * Wheat fell after touching its highest since late September
in the previous session amid fears that adverse dry weather
across a key U.S. growing region will damage yields.
    * Condition ratings for winter wheat declined in January in
several southern U.S. Plains states that have been hit by
drought, including top producer Kansas, the U.S. Department of
Agriculture said on Monday.
    * Corn and soybean traders are monitoring weather in
Argentina as drought has reduced plantings and hurt yield
potential for both crops.
    * A slightly cooler and wetter forecast for the world's No.
3 corn and soybean exporter and top supplier of soymeal and
soyoil weighed on corn and soy futures on Wednesday.
         
    MARKET NEWS  
    * The dollar kept modest gains against its peers on Thursday
after the Federal Reserve signalled its confidence about
inflation and growth in the world's biggest economy, with
traders now waiting on a host of indicators including non-farm
payrolls for further catalysts.  
    * U.S. oil prices extended gains on Thursday as OPEC's
strong compliance with a supply reduction pact offset news that
U.S. production topped 10 million barrels per day for the first
time in nearly half a century.  
    * U.S. stocks finished marginally higher on Wednesday as
indexes gave up early gains after the Federal Reserve said it
sees inflation rising this year, signalling it remains on track
to boost interest rates again in March.  
    
    DATA AHEAD (GMT)
0145  China       Caixin manufacturing PMI final          Jan
0850  France      Markit manufacturing PMI                Jan
0855  Germany     Markit/BME manufacturing PMI            Jan 
0900  Euro zone   Markit manufacturing PMI final          Jan
1330  U.S.        Weekly jobless claims
1500  U.S.        ISM manufacturing PMI                   Jan
1500  U.S.        Construction spending                   Dec
        
 Grains prices at  0117 GMT
 Contract      Last   Change  Pct chg  Two-day chg    MA 30   RSI 
 CBOT wheat  448.50    -3.25   -0.72%       -1.91%   431.02     64
 CBOT corn   360.75    -0.75   -0.21%       -0.21%   352.58     69
 CBOT soy    992.00    -3.75   -0.38%       -0.82%   972.95     62
 CBOT rice    12.44    $0.00   +0.00%       +0.24%   $12.06     77
 WTI crude    64.83    $0.10   +0.15%       +0.51%   $62.46     58
 Currencies                                                       
 Euro/dlr    $1.241  -$0.001   -0.10%       +0.06%                
 USD/AUD     0.8036   -0.002   -0.22%       -0.57%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Richard Pullin)
  
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