January 16, 2018 / 4:23 AM / 3 months ago

GRAINS-Wheat prices drop to 1-mth low on stronger-than-expected U.S. planting

    * Wheat falls on bigger-than-expected U.S. planted area
    * Soybeans at one-week high as USDA trims harvest view

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Jan 16 (Reuters) - Chicago wheat futures slid for
a third consecutive session on Tuesday to their lowest in nearly
a month, pressured by stronger-than-expected U.S. winter
    Soybean prices climbed to a one-week high, buoyed by a U.S.
Department of Agriculture estimate of lower production, while
corn ticked higher.
    The most-active wheat contract on the Chicago Board of Trade
 had eased 0.7 percent to $4.17-3/4 a bushel by 0347 GMT,
the lowest since Dec. 20. The market was closed on Monday for a
U.S. holiday.
    "We have perhaps not seen the last of the decline prompted
by the surprise in Friday's U.S. planting report," said Tobin
Gorey, director of agricultural strategy, Commonwealth Bank of
    The USDA estimated 2018 winter wheat plantings at 32.608
million acres, the smallest since 1909 but above analyst
expectations for 30.100 million to 32.000 million.

    The proportion of winter cereals in Ukraine in poor
condition has shrunk over the past month by around 3 percentage
points to 14.1 percent as of Jan. 11 following favourable
weather, analyst UkrAgroConsult said on Monday. 
    Soybeans added 0.4 percent to $9.64-1/2 a bushel,
after earlier hitting their highest since Jan. 9 at $9.67-1/2 a
    Corn rose 0.4 percent to $3.47-3/4 a bushel, having
closed down 0.7 percent in the previous session.
    The USDA raised its estimate for U.S. corn production due to
record-large yields and trimmed its estimate for the U.S.
soybean harvest, even as that crop remained the biggest ever.
    There is additional support for soybeans stemming from dry
weather in Argentina.
    "The weekend did yield some rain in Argentina's soybean
regions – not enough though to quell worries about yield
prospects," said Gorey.
    "High temperatures are evaporating moisture quicker than the
crops can use it."
    Rain over the weekend in drought-hit areas of Argentina's
farm belt helped growers plant soy in fields that had been at
risk of staying barren this season, Natalia Gattinoni, weather
expert with the INTA national climate institute, said on Monday.

    Commodity funds were net sellers of CBOT corn and wheat
futures contracts on Friday and net buyers of soybeans and
soymeal futures, traders said.

 Grains prices at  0347 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  417.75  -2.75   -0.65%   -3.58%       425.67  34
 CBOT corn   347.75  1.50    +0.43%   -0.29%       350.58  40
 CBOT soy    964.50  4.00    +0.42%   +1.53%       976.99  59
 WTI crude   64.52   $0.22   +0.34%   +1.13%       $59.51  86
 Euro/dlr    $1.226  $0.000  -0.03%   +0.59%               
 USD/AUD     0.7964  0.000   +0.01%   +0.66%               
 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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