May 14, 2018 / 3:50 AM / 2 months ago

GRAINS-Wheat falls to 2-week low on supply pressure, soybeans rise

    * Wheat drops for 4th session to lowest since April 27
    * Soybeans firm, market recovers from five-week low

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 14 (Reuters) - Chicago wheat slid for fourth
straight session on Monday, dropping to its lowest in two weeks
as abundant world supplies weighed on the market.
    Soybeans edged higher, following a drop to lowest in more
than five weeks amid uncertainty about the impact of
Washington-Beijing trade dispute on demand for U.S. supplies. 
    The Chicago Board of Trade most-active wheat contract
lost 0.8 percent to $4.95 a bushel by 0324 GMT, after dropping
earlier in the session to its lowest since April 27 at $4.94-1/2
a bushel.
    Soybeans rose 0.5 percent to $10.07-3/4 a bushel after
earlier hitting $10.01-3/4 a bushel, the lowest since April 4.
Corn slid 0.3 percent to $3.95-1/2 a bushel.
    "Some fundamental investors will no doubt have taken
profits," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia, referring to moves in the wheat
market.
    "The price drop though is now likely to trigger some
momentum investors to sell too."
    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 of 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.
    In addition, Russia, the world's biggest exporter, is on
track for a record crop. 
    The USDA on Thursday forecast that U.S. soybean exports will
break a record in the upcoming marketing year.
    However, just a month ago, Beijing proposed slapping tariffs
of 25 percent on all U.S. shipments of the oilseed, hitting U.S.
soybean shipments to China.
    The USDA on Thursday projected 2018/19 U.S. corn ending
stocks at 1.682 billion bushels, above the average trade
estimate of 1.628 billion.
    Large speculators raised their net long position in CBOT
corn futures in the week to May 8, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.

 Grains prices at 0324 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  495.00   -3.75   -0.75%   -2.27%       497.56   39
 CBOT corn   395.50   -1.00   -0.25%   -1.62%       397.25   40
 CBOT soy    1007.75  4.50    +0.45%   -1.32%       1041.68  33
 CBOT rice   12.61    -$0.05  -0.36%   +0.68%       $12.99   40
 WTI crude   70.48    -$0.22  -0.31%   -1.23%       $67.55   61
 Currencies                                                  
 Euro/dlr    $1.196   $0.002  +0.18%   +0.43%                
 USD/AUD     0.7558   0.002   +0.21%   +0.35%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sunil Nair)
  
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