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GRAINS-Wheat near 4-wk low on ample supplies, crop-friendly US weather
October 10, 2017 / 1:34 AM / 8 days ago

GRAINS-Wheat near 4-wk low on ample supplies, crop-friendly US weather

    SINGAPORE, Oct 10 (Reuters) - Chicago wheat was little
changed on Tuesday, a day after suffering its biggest one-day
loss in more than a month, as a lack of demand for U.S.
shipments in amply supplied world market kept a lid on prices.
    Soybeans edged higher after closing marginally lower on
Monday while corn was largely unchanged.
    
    FUNDAMENTALS
    * U.S. wheat market is facing pressure from poor demand for
U.S. suppliers amid stiff competition from the Black Sea region.
    * Wheat prices in Russia, which has been dominating the
global export market with a record crop, rose last week amid
strong demand from buyers including Egypt and Saudi Arabia,
analysts said on Monday.
    * Wheat hit its lowest since Sept. 12 at $4.35-1/2 a
bushel on Monday.  
    * Black Sea prices for Russian wheat with 12.5 percent
protein content and October delivery were at $193 a tonne on a
free-on-board (FOB) basis at the end of last week, up $2 from a
week earlier, agriculture consultancy IKAR said.
    * The focus is on the world's top wheat importer Egypt,
which set a tender on Monday to buy an unspecified amount of
wheat from global suppliers for shipment from Nov. 20-30.

    * There was additional pressure on the wheat market stemming
from improving soil moisture in U.S. winter wheat regions, where
planting is under way. Rains crossed the southern U.S. Plains
last week and showers were forecast in the Midwest this week.
    * Those storms should slow the harvest of fall crops, a
factor that has been underpinning soybeans and corn prices. The
USDA is scheduled to release its weekly crop progress report
later on Tuesday, a day later than usual due to Monday's
holiday.
    * The absence of regular rains in the Mid-West and Southeast
of Brazil will hamper soybean planting this week but moisture
will return to states like Mato Grosso over the coming days,
according to a forecast by Rural Clima on Monday.
    * Investors are reluctant to take on big new positions ahead
of the USDA's monthly supply-demand reports on Thursday.
Analysts surveyed by Reuters expect the government to raise its
estimates of U.S. corn and soybean yield and production in those
reports.
    * Commodity funds were net sellers of Chicago Board of Trade
soybean, wheat, corn and soymeal futures contracts on Monday and
net buyers of soyoil.
    
    MARKET NEWS
    * Asian shares gained on Tuesday, shrugging off modest
losses on Wall Street while expectations of a U.S. interest rate
increase this year continued to underpin the dollar.
    
    DATA AHEAD (GMT) 
0600  Germany              Trade balance             Aug
0645  France               Industrial output         Aug
0830  Britain              Industrial output         Aug
1000  U.S.                 NFIB business optimism    Sep
    
 Grains prices at  0110 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  436.00  0.00    +0.00%   -1.69%       443.68  39
 CBOT corn   349.50  0.00    +0.00%   -0.14%       352.58  49
 CBOT soy    969.00  2.25    +0.23%   -0.33%       962.82  57
 CBOT rice   11.85   $0.01   +0.04%   -0.34%       $12.44  26
 WTI crude   49.70   $0.12   +0.24%   +0.83%       $49.58  44
 Currencies                                                
 Euro/dlr    $1.175  $0.002  +0.13%   +0.18%               
 USD/AUD     0.7774  0.002   +0.28%   +0.06%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Amrutha Gayathri)
  

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