May 29, 2018 / 4:47 AM / in 6 months

GRAINS-Wheat prices hit 10-month peak on weather worries

    * Hot, dry weather threatens U.S. production
    * Australia, Russia also suffer from adverse weather
    * Corn rises, soybean prices rally 

    By Colin Packham
    SYDNEY, May 29 (Reuters) - U.S. wheat futures rose nearly
1.5 percent to hit their highest in more than 10 months on
Tuesday, with traders worried that adverse weather across key
growing regions would crimp production.
    Corn climbed more than 0.5 percent, drawing support from
wheat, while soybeans advanced for a second consecutive session.
    The most active wheat futures on the Chicago Board of Trade
 were up 1.4 percent at $5.50-3/4 a bushel by 0421 GMT.
They earlier touched their highest since July 2017 at $5.52 a
bushel, after closing up 2.4 percent on Friday.
    "U.S. regions were very hot over the weekend," said Tobin
Gorey, director of agricultural strategy, Commonwealth Bank of
Australia. "More bad news for wheat crops that are already
struggling."
    The outlook in the United States comes as wheat farmers in
Australia and Russia, two major grain exporters continue to
struggle with unfavourable weather.
    The most active corn futures rose 0.7 percent to $4.09
a bushel, having gained 0.4 percent in the previous session.
    The most active soybean futures were up 0.7 percent at
$10.48-1/2 a bushel, after firming 0.6 percent on Friday.
    Soybeans have drawn support in recent days amid a thawing of
relations between the United State and China, stirring
expectations of increased demand from Beijing.
    China has given the green light to state-owned companies to
begin buying U.S. soybeans again, although would-be buyers have
tight crush margins and high inventories.
    Analysts also noted that potential supply issues in Brazil
could support the oilseed.
    Brazil's President Michel Temer on Sunday made concessions
in a bid to end a week-long protest that has severely hampered
the flow of food, fuel and key exports in Latin America's
largest economy.
 
 Grains prices at  0421 GMT
 Contract       Last  Change  Pct chg  Two-day chg    MA 30  RSI 
 CBOT wheat   550.75    7.75   +1.43%       +3.87%   507.81    75
 CBOT corn    409.00    3.00   +0.74%       +1.18%   399.62    68
 CBOT soy    1048.50    7.00   +0.67%       +1.23%  1031.94    69
 CBOT rice     11.56  -$0.01   -0.09%       -0.04%   $12.71    18
 WTI crude     66.80  -$1.08   -1.59%       -5.53%   $69.51    21
 Currencies                                                      
 Euro/dlr     $1.163  $0.001   +0.06%       -0.18%               
 USD/AUD      0.7534  -0.001   -0.13%       -0.19%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham
Editing by Joseph Radford)
  
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