March 14, 2019 / 3:51 AM / 4 months ago

GRAINS-Wheat prices rebound on short-covering, but ample supply caps gains

    * Wheat up 0.8 pct, rises for two out of three sessions
    * Short-covering seen buoying wheat prices
    * Soybeans, corn gain for third consecutive session

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, March 14 (Reuters) - Chicago wheat futures rose
on Thursday and were set to gain for two out of three sessions
amid expectations of short-covering by funds, but abundant world
supplies kept a lid on prices. 
    Corn and soybeans were on track to climb for a third
consecutive session, with prices supported by planting delays in
the U.S. Midwest.
    Investment funds hold massive short positions, unusual for
this time of year, and many traders were concerned they would
begin to start covering them if farmers' seeding efforts were
stymied by wet fields and cold soil temperatures. 
    The most-active wheat contract on the Chicago Board of Trade
 was up 0.8 percent at $4.50-3/4 a bushel by 0324 GMT.
Wheat touched a 13-month low on Monday, but rebounded nearly 6
percent the following day.
    Soybeans were up 0.3 percent at $9.04 a bushel, while
corn rose 0.3 percent to $3.67-1/2 a bushel.
    "It is mainly fund action which is moving wheat prices
higher," said a trader at an international company which runs
wheat mills in parts of Southeast Asia.
    "As far as supplies are concerned, we are comfortable. The
next crop is looking fine in Europe and even in the Black Sea
region."
    Traders have built huge short positions in wheat in recent
months amid expectations of bumper global supplies.
    Hopes of an upturn in U.S. wheat exports have been tempered
by competition from other export zones such as western Europe
and the Black Sea region. 
    Black Sea wheat exporters are boosting sales to Asia with
last year's crop, a surprise move that is curbing demand for
U.S. grain, traders said.
    U.S. farmers are expected to plant 91.475 million acres of
corn in 2019 and 84.263 million acres of soybeans, according to
an annual survey conducted by commodity brokerage and analytical
firm Allendale Inc.

 Grains prices at  0324 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  450.75  3.50    +0.78%   +5.19%       489.01  13
 CBOT corn   367.50  1.00    +0.27%   +1.52%       378.81  33
 CBOT soy    904.00  3.00    +0.33%   +1.57%       918.12  39
 CBOT rice   10.78   -$0.05  -0.46%   +0.61%       $10.57  60
 WTI crude   58.34   $0.08   +0.14%   +2.58%       $55.55  
 Currencies                                                
 Euro/dlr    $1.132  $0.008  +0.68%   +0.77%               
 USD/AUD     0.7070  0.000   +0.01%   +0.35%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
                 

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  
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