May 31, 2018 / 3:36 AM / 6 months ago

GRAINS-Wheat falls for third day, near one-week low on improved weather outlook

    * Wheat loses more ground, near Wednesday's 1-wk low
    * Improved forecasts for spring wheat in U.S., Canada

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 31 (Reuters) - Chicago wheat fell for a third
consecutive day on Thursday, trading near the one-week low
reached in the last session with forecasts of crop-friendly
weather in the United States and Canada weighing on prices.
    Corn and soybeans ticked higher after two sessions of
losses.
    The most-active wheat contract on the Chicago Board Of Trade
 fell 0.5 percent to $5.19-1/4 a bushel by 0307 GMT. Prices
closed 2.7 percent lower on Tuesday after falling to as low as
$5.17, the lowest since May 23.
    Soybeans were up 0.1 percent at $10.23-1/2 a bushel
and corn rose 0.3 percent to $3.94-1/2 a bushel.
    "There are forecasts for improved weather for spring wheat
in the U.S. and Canada and that is adding pressure on prices,"
said Phin Ziebell, agribusiness economist at National Australia
Bank. 
    "But we still have worries for the Australian crop which is
in need of rains."
    For the month of May, wheat is on track for a second
straight monthly rise, soybeans are down 2.4 percent after
closing marginally higher in April and corn is set to drop 1.5
percent following gains in the all of the previous months of
2018.
    Wheat is being pressured amid an improvement in weather
forecasts for U.S. and Canadian crops. 
    A significant change in the weather pattern is expected over
the next 10 days, with cooler and much wetter weather expected,
Radiant Solutions said in a daily weather note.
    Increasing trade tensions between the United States and
China are pressuring soybeans.
    China lashed out at renewed threats from the White House on
trade, warning that it was ready to fight back if Washington was
looking for a trade war, days ahead of a planned visit by U.S.
Commerce Secretary Wilbur Ross.
    In an unexpected change in tone, the United States on
Tuesday said it still holds the threat of imposing tariffs on
$50 billion of imports from China and will use it unless Beijing
addresses the issue of theft of U.S. intellectual property.
    China is the world's biggest soybean importer and the top
buyer of U.S. sorghum, a feed grain that competes with corn.
    The U.S. Department of Agriculture (USDA) late on Tuesday
rated 79 percent of the corn crop as good to excellent, above
the highest point in a range of trade estimates and up from 65
percent at the same point last year.
    The USDA rated 38 percent of the winter wheat crop as good
to excellent, up from 36 percent the previous week. Analysts on
average had expected no change. 
    
 Grains prices at  0307 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  519.25   -2.75   -0.53%   -3.22%       509.73   52
 CBOT corn   394.50   1.00    +0.25%   -1.38%       399.53   42
 CBOT soy    1023.50  0.50    +0.05%   -0.68%       1029.20  49
 CBOT rice   11.58    -$0.08  -0.73%   +1.00%       $12.58   29
 WTI crude   68.12    -$0.09  -0.13%   +2.08%       $69.55   36
 Currencies                                                  
 Euro/dlr    $1.166   $0.000  +0.02%   +1.08%                
 USD/AUD     0.7559   -0.002  -0.21%   +0.73%                
 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)
  
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