Reuters logo
GRAINS-Wheat faces biggest weekly loss in 4 months as abundant supplies weigh
December 8, 2017 / 3:47 AM / 6 days ago

GRAINS-Wheat faces biggest weekly loss in 4 months as abundant supplies weigh

    * Wheat down 3.7 pct this week, biggest since early August
    * Soybeans supported by strong demand, LatAm crop woes

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 8 (Reuters) - Chicago wheat futures ticked
higher on Friday as the market took a breather after falling for
the last four sessions with prices on track for the biggest
weekly decline in four months on pressure from ample supplies.
    Soybeans were little changed, having climbed to a
three-month high earlier this week as the market was supported
by strong demand and concerns over dryness in Argentina.
    The most-active wheat contract on the Chicago Board Of Trade
 is down 3.7 percent this week, the biggest slide since the
week ending on Aug. 4.
    Soybeans are down 0.2 percent this week, their first
weekly slide since the week ending Oct. 27 and corn has
dropped 1.7 percent, its biggest weekly fall since Oct. 20.
    "The wheat market has been sliding since it peaked around
the middle of the year," said Phin Ziebell, an agribusiness
economist at National Australia Bank.
    "We are not going to break out of this trend unless we see a
fundamental change."
    Bearish influences this week came from Canada where farmers
harvested larger crops than expected this autumn, reaping
record-large canola output and a surprisingly big wheat crop, a
Statistics Canada report showed on Wednesday.
    U.S. wheat exporters are finding it difficult to win
business as the Black Sea wheat suppliers offer stiff
competition. 
    This competition is expected intensify in 2018.
    Russia will spend 2 billion roubles ($34 million) in grain
transportation subsidies to help to speed exports in 2018, the
Deputy Agriculture Minister said on Thursday.
    Already among the world's largest wheat exporters, Russia is
trying to step up a gear after this year's record crop, which is
keeping its grain storage, railway transport and export
infrastructure working at maximum capacity.
    The U.S. Agriculture Department on Thursday said weekly
export sales of wheat totalled 323,000 tonnes. Analysts had been
expecting wheat export sales in a range from 250,000 to 450,000
tonnes.
    For soybeans, export sales came in at 2.086 million tonnes,
topping forecasts that ranged from 1 million to 1.650 million
tonnes.
    Strong Chinese demand is expected to further support prices.
    China, the world's largest soy buyer, imported 8.68 million
tonnes of soybeans in November, up 48.1 percent from 5.86
million tonnes in October, figures from the General
Administration of Customs of China showed. 
    U.S. soybean exporters have shipped at a slower pace this
crop year than in previous years, casting doubt on whether the
industry will reach government forecasts for exports.
    Despite the slow start to exports, the U.S. government is
unlikely to reduce export projections when it releases its
outlook for supply and demand on Dec. 12, analysts said, because
of uncertainty about the size of the crop from the rival Latin
American producers due to adverse weather.
    
 Grains prices at  0307 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  422.25  0.75    +0.18%   -0.71%       439.08  26
 CBOT corn   352.50  1.00    +0.28%   -0.07%       356.96  38
 CBOT soy    992.00  0.00    +0.00%   -1.07%       989.86  48
 CBOT rice   12.15   $0.01   +0.12%   -0.33%       $11.96  44
 WTI crude   56.64   -$0.05  -0.09%   +1.22%       $56.50  46
 Currencies                                                
 Euro/dlr    $1.177  $0.000  -0.04%   -0.25%               
 USD/AUD     0.7512  0.000   +0.01%   -0.67%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Christian
Schmollinger)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below