September 20, 2017 / 3:38 AM / a month ago

GRAINS-Wheat firms on bargain-buying, ample supplies cap gains

    * Chicago wheat ticks up after closing marginally lower
    * Corn little changed after two sessions of decline
    * Harvest of bumper U.S. corn crop to keep lid on prices

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 20 (Reuters) - Chicago wheat futures edged
higher on Wednesday with prices supported by bargain-buying and
expectations of lower production in Canada although abundant
world supplies limited gains.
    Corn was little changed after falling almost 2 percent in
the past two sessions as harvest of a large U.S. crop will boost
supplies.
    The most-active wheat contract on the Chicago Board of Trade
(CBOT) rose 0.3 percent to $4.44-1/2 a bushel by 0248 GMT,
corn was unchanged at $3.48-1/4 a bushel and soybeans
 were up 0.3 percent to $9.68 a bushel.
    "Both Chicago and Kansas saw steepish falls during the day
but sizeable buying emerged to turn the market around," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia, referring to price action on Tuesday.
    "The market's continued resilience is bolstering the
impression that seasonal price lows are in the rear view
mirror."
    There was supportive news for the wheat market with
estimates of lower output in Canada.
    Wheat production in Canada fell by 14.5 percent in 2017
compared to 2016, according to a Statistics Canada survey based
in part on satellite and agroclimate data.
    The decline in Canada's wheat output comes after lower
production in Australia and excessive wet weather reducing the
crop in Argentina.
    Still, plentiful supplies from the Black Sea region continue
to offer stiff competition to U.S. exporters.
    The state grain buyer in Egypt, the world's biggest
importer, purchased 175,000 tonnes of Russian wheat in a tender.
No U.S. wheat was offered.
    The U.S. corn crop was 7 percent harvested by Sunday, the
U.S. Department of Agriculture (USDA) said in a weekly report.

    The USDA said 34 percent of the corn crop was mature, well
behind the five-year average of 47 percent. But forecasts showed
no major weather problems that could threaten late-maturing
fields.
    Commodity funds were net sellers of CBOT corn, soybean,
soymeal and wheat futures contracts on Tuesday and net buyers of
soyoil, traders said.

 Grains prices at  0248 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  444.50  1.50    +0.34%   +0.23%       443.48  68
 CBOT corn   348.25  0.00    +0.00%   -0.92%       358.97  55
 CBOT soy    968.00  2.50    +0.26%   +0.03%       950.45  67
 CBOT rice   12.80   $0.01   +0.12%   -0.70%       $12.69  62
 WTI crude   49.78   $0.30   +0.61%   -0.26%       $48.19  63
 Currencies                                                
 Euro/dlr    $1.201  $0.002  +0.13%   +0.47%               
 USD/AUD     0.8012  0.000   +0.04%   +0.65%               
 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