May 23, 2018 / 1:29 AM / 3 months ago

GRAINS-Wheat firms to linger near 18-day high on fears for global production

    SYDNEY, May 23 (Reuters) - U.S. wheat futures rose for a
second consecutive session on Wednesday, lingering near a more
than two-week high, as concerns over potential lower global
production after recent adverse weather supported prices.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board Of
Trade were up 0.6 percent to $5.24-3/4 a bushel by 0100
GMT, having closed up 2.8 percent on Tuesday when prices hit a
high of $5.30-1/4 a bushel - the highest since May 4.
    * The most active soybean futures were down 0.1
percent to $10.29-3/4 a bushel, having firmed 0.5 percent on
Tuesday when prices hit a high of $10.36 a bushel - the highest
since May 7.
    * The most active corn futures were up 0.2 percent to
$4.05-1/2, having gained 0.5 percent in the previous session.
    * The U.S. Department of Agriculture said just 36 percent of
the U.S. winter wheat crop was in good-to-excellent shape as of
Sunday, compared with 52 percent at the same point last year.

    * Dry weather in parts of Canada, eastern Australia and
southern Russia, all major wheat exporters, also gave prices a
lift.
    * Better-than-expected U.S. soybean planting progress capped
the market after the USDA said 56 percent of the crop had been
seeded as of Sunday, well ahead of the five-year average of 44
percent.
    * Corn planting was 81-percent completed, in line with the
average pace, USDA said.
         
    MARKET NEWS  
    * The dollar slipped on Tuesday after six straight days of
gains, as U.S. Treasury yields dipped and investors looked for
fresh incentives to buy the currency following a nearly 7
percent rally since mid-February.  
    * Oil prices edged lower on Wednesday as the market took a
breather on expectations OPEC may raise supplies as early as
June, although geopolitical risks kept a floor under the market.
  
    * Oil prices edged lower on Wednesday as the market took a
breather on expectations OPEC may raise supplies as early as
June, although geopolitical risks kept a floor under the market.
  
    
    DATA AHEAD (GMT)
0700  France       Markit manufacturing flash PMI          May
0730  Germany      Markit manufacturing flash PMI          May
0800  Euro zone    Markit manufacturing flash PMI          May
1345  U.S.         Markit manufacturing flash PMI          May
1400  U.S.         New home sales                          Apr
1400  U.S.         Consumer confidence                     May
1800  Federal Reserve releases minutes from May 1-2 meeting
        
 Grains prices at  0100 GMT
 Contract       Last  Change  Pct chg  Two-day chg     MA 30  RSI
 CBOT wheat   524.75    3.25   +0.62%       +3.45%    502.06   62
 CBOT corn    405.50    0.75   +0.19%       +0.68%    398.38   65
 CBOT soy    1029.75   -0.75   -0.07%       +0.44%   1033.82   58
 CBOT rice     12.33   $0.00   +0.00%       +0.04%    $12.91   39
 WTI crude     72.11  -$0.09   -0.12%       -0.18%    $69.36   68
 Currencies                                                      
 Euro/dlr     $1.178  $0.000   +0.03%       -0.08%               
 USD/AUD      0.7577   0.000   +0.03%       -0.05%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
    

 (Reporting by Colin Packham; Editing by Amrutha Gayathri)
  
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