April 17, 2019 / 3:48 AM / a month ago

GRAINS-Wheat firm after losses, but global production outlook caps gains

    * Wheat recovers after dropping to one-month low on Tuesday
    * Higher yields in U.S., Russia, Germany on crop-friendly
weather

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, April 17 (Reuters) - Chicago wheat futures edged
up on Wednesday, supported as investors looked for bargains
after the market dropped to a one-month low in the last session
on pressure from expectations of bumper production across the
northern hemisphere.
    Soybean prices edged up, while corn was little changed.
    The most-active wheat contract on the Chicago Board of
Trade had climbed 0.5 percent to $4.47 a bushel by 0328 GMT,
after dropping to its lowest since March 13 at $4.42 a bushel on
Tuesday.
    "Wheat crop yields are looking good in top exporting
countries, but bargain-buying could be part of today's action,"
said Phin Ziebell, agribusiness economist at National Australia
Bank. 
    Corn was flat at $3.59 a bushel, while soybeans
gained 0.1 percent to $8.88-3/4 a bushel.
    The wheat market is coming under pressure as crop-friendly
weather boosts crops across the northern hemisphere.
    The U.S. Department of Agriculture in a weekly report issued
on Monday rated 60 percent of the U.S. winter wheat crop in
good-to-excellent condition. That was unchanged from the
previous week and in line with trade expectations, but up from
31 percent a year ago. 
    Agriculture consultancy SovEcon has raised its forecast for
Russia's 2019 wheat crop to 83.4 million tonnes from 80 million
tonnes, signalling bigger supplies in the world's top exporter.
    Germany's 2019 wheat harvest will jump 20.6 percent on the
year to 24.44 million tonnes with rising expectations of a
recovery after the drought-reduced harvest last year, the
country's association of farm cooperatives (DRV) said on
Tuesday.
    Hopes for a positive outcome from U.S. trade talks are
likely to aid soybean prices.
    China would likely lift a ban on U.S. poultry as part of a
trade deal and may buy more pork to meet a growing supply
deficit, but it is not willing to allow a prohibited growth drug
used in roughly half the U.S. hog herd, two sources with
knowledge of the negotiations said.
    The United States and China are trying to hammer out a deal
to end a months-long trade war that has cost the world's two
largest economies billions and roiled global financial markets
and supply chains.
    
 Grains prices at 0328 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  447.00  2.00    +0.45%   -2.72%       458.60  35
 CBOT corn   359.00  0.00    +0.00%   -1.03%       366.48  42
 CBOT soy    888.75  0.75    +0.08%   -1.11%       898.59  39
 CBOT rice   10.53   $0.01   +0.14%   -0.24%       $10.74  50
 WTI crude   64.45   $0.40   +0.62%   +1.66%       $60.68  
 Currencies                                                
 Euro/dlr    $1.130  $0.002  +0.15%   -0.09%               
 USD/AUD     0.7185  0.001   +0.14%   +0.17%               
 
 
 
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  
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