October 2, 2017 / 3:39 AM / 9 months ago

GRAINS-Wheat hits 1-wk low on higher US output, soybean prices ease

    * Wheat falls for 3rd session as USDA raises supply forecast
    * Soybeans inch down after rally, Brazil planting in focus

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Oct 2 (Reuters) - Chicago wheat slid for a third
consecutive session on Monday, hitting a one-week low under
pressure from a forecast for higher production in the United
    Soybean prices dropped after climbing almost 1 percent on
Friday, while corn was little changed.
    The U.S. Department of Agriculture reported U.S. 2017
production of spring wheat other than durum at 416 million
bushels, up from its previous estimate of 402 million bushels
and well above an average of analyst estimates for 382 million
    The government put the U.S. all-wheat crop at 1.741 billion
bushels, above the average trade estimate of 1.718 billion
    In its quarterly stocks report released on Friday, the USDA
showed that the United States burned through corn and soybeans
at a furious clip during June, July and August.
    But despite the strong demand, farmers and grain handlers
were still left with corn ending stocks at a 29-year peak and
soybean ending stocks at a 10-year high.
    "The USDA keep surprising us," said one India-based
commodities analyst, declining to be identified.
    "We were expecting farmers to have abandoned large areas
planted with spring wheat in the United States. Now it looks
like that was not the case."
    The Chicago Board of Trade most-active wheat contract
was trading 0.2-percent lower at $4.47-1/4 a bushel at 0307 GMT,
 after dropping earlier in the session to it lowest since Sept.
25 at $4.44-3/4 a bushel.
    Soybeans gave up 0.3 percent to $9.65-3/4 a bushel,
while corn was unchanged at $3.55-1/4 a bushel.
    Brazilian soybean producers had planted 1.5 percent of the
2017/18 crop through Sept. 28, below the level of 4.8 percent at
this time last year, consultancy AgRural said in a statement on
    The current planted area is also below a five-year average
of 2.3 percent, AgRural said, citing scarce rains in key
producing regions.
    Australia's wheat production is likely to fall to its lowest
since 2007/08 amid persistent dry weather, missing official
forecasts made earlier this month as well as the USDA's latest
estimate, a Reuters poll showed.
    Large speculators increased their net short position in CBOT
corn futures in the week to Sept. 26, 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 trimmed their net short
position in soybeans.
 Grains prices at  0307 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  447.25  -1.00    -0.22%   -1.70%       442.01  54
 CBOT corn   355.25  0.00     +0.00%   +0.78%       354.14  63
 CBOT soy    965.75  -2.50    -0.26%   +0.65%       958.24  52
 CBOT rice   12.01   $0.01    +0.08%   +0.29%       $12.57  31
 WTI crude   51.56   -$0.11   -0.21%   +0.00%       $49.13  64
 Euro/dlr    $1.178  -$0.004  -0.30%   -0.07%               
 USD/AUD     0.7821  -0.001   -0.15%   -0.45%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
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