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GRAINS-Wheat near 4-wk low on ample supplies, crop-friendly US weather
October 10, 2017 / 3:49 AM / in 7 days

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

    * Wheat prices flat after Monday's biggest 1-day loss in a
month
    * Market eyes USDA's monthly supply-demand report on
Thursday

 (Adds comment, detail)
    By Naveen Thukral
    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, with a lack of demand for U.S.
shipments in an amply supplied world market dragging on prices.
    Soybean prices edged up after closing marginally lower on
Monday, while corn was largely unchanged.
    The Chicago Board of Trade most-active wheat contract
was steady at $4.36 a bushel by 0323 GMT, after hitting its
lowest since Sept. 12 at $4.35-1/2 a bushel on Monday.
    Soybeans added 0.3 percent to $9.69-3/4 a bushel and
corn was unchanged at $4.36 a bushel.
    "Globally there is lots of wheat, the U.S. has to compete
with lower prices," said one Australia-based commodities
analyst. "U.S. wheat prices rose in September and the market is
giving up those gains."
    The 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.
    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 basis at the end of last week, up $2 from a week
earlier.
    The market is focusing on the world No.1 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 soybean and corn prices. The USDA is
scheduled to release its weekly crop progress report on Tuesday,
a day later than usual due to a holiday on Monday.
    The absence of regular rains in the Midwest 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 CBOT soybean, wheat,
corn and soymeal futures contracts on Monday and net buyers of
soyoil.
    
 Grains prices at 0323 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    969.75  3.00    +0.31%   -0.26%       962.84  57
 CBOT rice   11.85   $0.01   +0.04%   -0.34%       $12.44  26
 WTI crude   49.64   $0.06   +0.12%   +0.71%       $49.58  43
 Currencies                                                
 Euro/dlr    $1.177  $0.003  +0.27%   +0.32%               
 USD/AUD     0.7782  0.003   +0.39%   +0.17%               
 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 and
Joseph Radford)
  

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