May 11, 2018 / 3:57 AM / in 3 months

GRAINS-Wheat faces biggest weekly fall since mid-March on USDA forecast

    * Wheat down 4.4 pct this week on higher-than-expected
output
    * Soybeans face second week of declines on slowing Chinese
demand

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 11 (Reuters) - Chicago wheat slid for a third
consecutive session on Friday with the market set to post its
biggest weekly decline in two months after the U.S. government
estimated production above expectations.
    Soybeans are poised for a second week of decline on pressure
from slowing demand in top importer China, while corn is down
this week following two weeks of gains.
    The most-active wheat contract on the Chicago Board Of Trade
 slipped 4.3 percent this week, on track for its biggest
weekly loss since mid-March.
    In the previous session, the contract hit $5.00 a bushel,
its lowest since April 27.
    Soybeans are down 2 percent this week, and corn
slipped 1.3 percent.
    "Some investors may have decided that without another crop
downgrade the rally in wheat prices has come to end. We agree
with that view," said Tobin Gorey, director of agricultural
strategy, Commonwealth Bank of Australia.  
    "The USDA is also forecasting a hefty rise in spring, durum
and other high protein spring wheat production."
    The U.S. Department of Agriculture projected the total U.S.
wheat crop for the 2018-19 marketing year at 1.821 billion
bushels, above the average analyst estimate for 1.777 billion
and up 5 percent from the prior year.
    Winter wheat grown in the southern U.S. Plains has struggled
with months of drought, but the USDA said combined production of
spring and durum wheat would increase 34 percent from the
previous year.
    The agency expects global wheat stocks to total around
264.33 million tonnes by the end of 2018-19 marketing year, down
about 2 percent from its 2017-18 forecast of 270.46 million, an
all-time high.
    The soybean market is being dragged down by slowing demand
in China, which buys more than 60 percent of the oilseed traded
worldwide.
    China will cut its soybean imports for the first time in 15
years in 2018/19, the agriculture ministry forecast on Thursday,
as a trade spat with the United States pushes pig farmers in the
world's top buyer to seek cheaper proteins.
    The USDA projected 2018-19 soybean ending stocks at 415
million bushels. The figure was below most trade expectations.
    It forecast global corn ending stocks would drop to 159.15
million tonnes by the end of 2018-19, from 194.85 million in
2017-18 and below a range of trade expectations.
    Commodity funds were net sellers of CBOT corn, wheat and
soymeal futures contracts on Thursday and net buyers of soybeans
and soyoil, traders said.

 Grains prices at 0331 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  503.50   -3.00   -0.59%   -1.37%       496.56   51
 CBOT corn   400.75   -1.25   -0.31%   -0.50%       397.43   55
 CBOT soy    1016.00  -5.25   -0.51%   +0.02%       1043.42  39
 CBOT rice   12.53    $0.00   +0.00%   -1.14%       $12.99   26
 WTI crude   71.24    -$0.12  -0.17%   +0.14%       $67.32   68
 Currencies                                                  
 Euro/dlr    $1.191   $0.000  -0.02%   +0.51%                
 USD/AUD     0.7531   0.000   -0.01%   +0.92%                
 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)
  
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