July 26, 2018 / 1:52 AM / in 4 months

GRAINS-Wheat prices hit 2-mth high as dry weather threatens global output

    SYDNEY, July 26 (Reuters) - U.S. wheat futures edged up on
Thursday, touching a two-month high on fears that a wave of hot,
dry weather would crimp production in major exporters.
         
    FUNDAMENTALS 
    * The most active wheat futures on the Chicago Board of
Trade were up 0.3 percent at $5.44-1/4 a bushel by 0117
GMT, after earlier hitting their highest since May 29 at $5.48.
Wheat closed up 6.4 percent on Wednesday. 
    * The most active soybean futures were up 1.5 percent
at $8.88-3/4 a bushel, having previously marked their strongest
since July 9 at $8.89-1/2. Soybean prices firmed 0.3 percent on
Wednesday.
    * The most active corn futures were up 0.8 percent at
$4.76-1/4 a bushel. They earlier touched their highest since
June 13 at $3.76-3/4 a bushel, having gained 2 percent in the
previous session.
    * Consultancy Strategie Grains has again cut its estimate
for this year's European Union soft wheat crop, which is now
expected to be below 130 million.
    * That would be the lowest soft wheat harvest in the
28-member bloc since 2012, analyst Laurine Simon told Reuters.
    * In Russia, the world's top wheat exporter, yields are
around a three-year low, according to agriculture consultancy
SovEcon.
    * In the United States, scouts on an annual crop tour found
below average yield prospects for hard red spring wheat in the
southern half of North Dakota and adjacent areas of South
Dakota.
    * The soybean market was underpinned by the Trump
administration's plan to provide up to $12 billion in aid to
shield farmers from economic pain stemming from trade disputes.
         
    MARKET NEWS  
    * The U.S. dollar weakened against the euro on Wednesday
after the United States and the EU agreed to deescalate a
transatlantic trade conflict, leaders from the two trading
partners announced in a joint statement in Washington.  
    * Oil prices rose for the second consecutive day on
Wednesday after U.S. government data showed domestic crude
inventories fell to their lowest levels since February 2015,
easing worries about oversupply that have weighed on markets in
recent weeks.  
    * Nasdaq futures dropped 0.85 percent late on Wednesday,
suggesting the technology-heavy Nasdaq Composite index .IXIC
would fall when trading opens on Thursday morning.  
    
 Grains prices at  0117 GMT
 Contract      Last  Change  Pct chg   Two-day chg   MA 30   RSI 
 CBOT wheat  544.25    1.50   +0.28%        +6.66%  501.46     75
 CBOT corn   376.25    3.00   +0.80%        +2.80%  368.90     66
 CBOT soy    888.75   13.00   +1.48%        +1.77%  881.16     67
 CBOT rice    12.05   $0.00   +0.00%        -0.08%  $11.97     53
 WTI crude    69.49   $0.19   +0.27%        +1.42%  $69.89     50
 Currencies                                                      
 Euro/dlr    $1.173  $0.000   +0.03%        +0.41%               
 USD/AUD     0.7456   0.000   +0.04%        +0.49%               
 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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