November 27, 2017 / 2:58 AM / 9 months ago

GRAINS-Wheat falls for 2nd day as U.S. exports suffer, corn eases

    * U.S. weekly wheat exports fall below expectations
    * Dry weather in Argentina supporting soybeans

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Nov 27 (Reuters) - Chicago wheat lost more ground
on Monday, falling for a second session as abundant global
supplies make it hard for U.S. exporters to win business.
    Corn slid, tracking wheat, while soybeans ticked higher as
dry weather in Argentina remained a concern with the key farming
areas not receiving enough rains.
    "The U.S. wheat futures markets returned from the
Thanksgiving holiday to be greeted by disappointing news on U.S.
exports," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "The market seems to have lost patience and concluded the
U.S. is simply not going to export enough wheat."
    The Chicago Board of Trade most-active wheat contract
lost 0.4 percent to $4.33 a bushel by 0240 GMT. Corn gave
up 0.4 percent to $3.41 a bushel and soybeans added 0.2
percent to $9.94-3/4 a bushel.
    Chicago wheat futures are being weighed down by U.S. weekly
export sales which fell below a range of trade expectations.
    The U.S. Department of Agriculture reported export sales of
old-crop U.S. wheat in the latest week at 199,845 tonnes, the
smallest tally in six weeks. Analysts had expected sales of
350,000 to 550,000 tonnes.
    The USDA reported weekly export sales of U.S. corn at
1,106,400 tonnes (old and new crop years combined), in line with
trade expectations.
    The agency's weekly sales tally for soybeans fell below 1
million tonnes, missing a range of trade expectations. Export
sales of soymeal, at 379,800 tonnes, topped expectations. 
    World soyoil prices will fall due to India's decision last
week to raise an import tax on edible oil to the highest level
in more than a decade, Argentina's export industry chamber said
on Friday.
    The tax hike, announced on Nov. 17, put India, the world's
top soyoil importer, at odds with No. 1 exporter Argentina.
    Argentina authorized on Friday the use of genetically
modified soybean seeds resistant to herbicides other than
glyphosate, as the European Union (EU) debates whether to extend
the license of weed-killers containing the ingredient.

    Global food producers and other exporters are looking
forward to boosting sales to China. The country said it will cut
import tariffs on consumer products ranging from meats and
whisky to deodorant and cashmere clothes, as part of a drive to
lower costs and help stimulate consumer spending at home.
    Commodity funds were net sellers of Chicago Board of Trade
wheat, corn, soybean, soymeal and soyoil futures contracts on
Friday, traders said.
 Grains prices at  0240 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  433.00  -1.75    -0.40%   -1.98%       445.93  31
 CBOT corn   341.00  -1.25    -0.37%   -1.23%       346.11  41
 CBOT soy    994.75  1.50     +0.15%   -0.25%       988.53  61
 CBOT rice   12.39   -$0.03   -0.24%   +0.41%       $11.93  77
 WTI crude   58.70   -$0.25   -0.42%   +1.17%       $54.93  72
 Euro/dlr    $1.192  -$0.002  -0.13%   +0.55%               
 USD/AUD     0.7599  -0.001   -0.17%   -0.30%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral; editing by Richard Pullin and
Gopakumar Warrier)
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