January 29, 2018 / 3:34 AM / 6 months ago

GRAINS-Wheat hits near 4-mth top on U.S. weather woes, soybean up 1.2 pct

    * Wheat climbs 4th straight session, at highest since early
Oct
    * Soybeans rise as dryness in Argentina forecast to continue

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 29 (Reuters) - Chicago wheat rose for a
fourth consecutive session on Monday to its highest since early
October with prices buoyed by concerns over dry weather curbing
U.S. winter crop output.
    Soybeans rose 1.2 percent, recouping last session's decline
on forecasts of continued dryness in Argentina's oilseed belt,
while corn rose for a second session to its highest since early
December, supported by strong demand.
    There is additional support for the commodity markets
stemming from a weaker dollar, which makes greenback-priced
goods cheaper for importers holding other currencies.
    "The U.S. still has a lot of wheat to move so prices can ill
afford to overshoot the margin the greenback has provided," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia.
    "That does not prevent an overshoot happening for a brief
period at least. Investors are heavily short wheat futures."
    The most-active wheat contract on the Chicago Board Of Trade
 rose 1.4 percent to $4.47-1/4 a bushel by 0314 GMT,
touching its highest since Oct. 4. 
    Soybeans added 1.2 percent to $9.97-1/2 a bushel,
having closed down 0.7 percent on Friday. 
    Corn gained 0.5 percent to $3.58-1/4 a bushel. Earlier
in the session corn hits its highest since Dec. 4 at $3.58-1/2.
    Wheat has drawn support from dry weather plaguing the U.S.
Plains, although a wetter weather pattern could begin to
replenish moisture in the south-central parts of the region. 
    Soybeans are firm as dry weather also threatens production
in Argentina. But big harvests in Brazil and the United States,
the world's top two soybean exporters, may offset crop losses in
Argentina, traders said. 
    Global supplies are ample, with the U.S. Department of
Agriculture (USDA) projecting world soybean inventories at an
all-time high at the end of the 2017/18 marketing year.
    Private exporters struck deals to sell 125,000 tonnes of
U.S. corn to unknown destinations, the USDA said on Friday.
 
    The dollar wobbled near three-year lows against a basket of
major currencies on Monday, struggling to pull away from six
straight weeks of losses amid evaporating yield advantages and
doubt about Washington's commitment to a strong currency.
    Commodity funds were net buyers of CBOT wheat, corn and
soyoil futures contracts on Friday, traders said. They were net
sellers of soybean and soymeal futures.
    
 Grains prices at  0314 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  447.25  6.25     +1.42%   +2.93%       427.60  76
 CBOT corn   358.25  1.75     +0.49%   +0.84%       351.20  73
 CBOT soy    997.50  12.00    +1.22%   +0.53%       971.30  74
 CBOT rice   12.33   -$0.01   -0.04%   +1.57%       $12.01  75
 WTI crude   66.37   $0.23    +0.35%   +1.31%       $61.74  85
 Currencies                                                 
 Euro/dlr    $1.240  -$0.002  -0.14%   +0.06%               
 USD/AUD     0.8089  -0.002   -0.25%   +0.76%               
 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Tom Hogue)
  
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