October 18, 2019 / 4:40 AM / a month ago

GRAINS-Wheat poised for 7th straight weekly gain on weather, short-covering

    * Wheat set for longest weekly winning streak since Feb 2018
    * Short-covering, dryness in Australia and Argentina support

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Oct 18 (Reuters) - Chicago wheat futures rose on
Friday, with the market set for a seventh consecutive weekly
gain, the longest winning streak since February last year, on
the back of short-covering and dryness in Southern Hemisphere's
key producers.
    Soybeans and corn rose for a second session on doubts about
the size of U.S. crops.
    The most-active wheat contract on the Chicago Board Of Trade
 has added more than 3.5% this week, extending two-week
gains to more than 7%. The market on Thursday climbed to $5.27 a
bushel, the highest since July 15.
    Soybeans were almost unchanged for the week, while
corn was down 0.5%, the first decline since the first week
of September.
    Dry weather threatens wheat production in Argentina and
Australia, underpinning world supplies.
    Rains in Argentina have not been strong enough to help wheat
fields after weeks of dryness, but showers in the eastern farm
belt have helped speed corn planting, the Buenos Aires Grains
Exchange said on Thursday.
    "We are missing 5 million tonnes of wheat between Australia
and Argentina," said Ole Houe, director of advisory services at
brokerage IKON Commodities in Sydney.
    "This is typically that time of the year when we on the
other side of the Northern Hemisphere build risk premium."
    Traders said Egypt on Wednesday bought 405,000 tonnes of
Russian, French and Ukrainian wheat at prices that were roughly
$6 to $9 per tonne higher than what it paid at its previous
international tender on Oct. 8.
    Strategie Grains has again lifted its outlook for European
Union soft wheat exports this season, citing competitiveness on
world markets and lower-than-expected global supply from
drought-hit Argentina and Australia.
    In a monthly report the consultancy forecast 2019/2020
exports outside the EU at 27.3 million tonnes, up from 25.7
million seen in September.
    Corn and soybean futures have climbed after the U.S.
Department of Agriculture said it would collect additional
information on acreage in Minnesota and North Dakota following
recent snowfall, and could publish changes in its Nov. 8 crop
production report.
    The focus in the soybean market is on U.S.-China trade.
    White House economic adviser Larry Kudlow said on Thursday
that China's "serious commitment" to buy $40 billion to $50
billion worth of U.S. agricultural goods as part of a so-called
Phase 1 trade deal would depend in part on private companies and
market conditions.
    Commodity funds were net buyers of CBOT corn, wheat, soybean
and soymeal futures contracts on Thursday and net sellers of
soyoil futures, traders said.
 Grains prices at 0417 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  525.75  0.25    +0.05%   +3.70%       490.80  76
 CBOT corn   395.75  1.00    +0.25%   +0.64%       378.85  60
 CBOT soy    936.75  5.25    +0.56%   +0.29%       902.65  68
 CBOT rice   11.99   $0.00   +0.00%   +0.88%       $12.02  57
 WTI crude   53.84   -$0.09  -0.17%   +0.90%       $55.39  
 Euro/dlr    $1.113  $0.009  +0.85%   +0.88%               
 USD/AUD     0.6831  0.008   +1.17%   +0.84%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
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