August 23, 2018 / 4:05 AM / 3 months ago

GRAINS-Wheat prices rebound on supply concerns, soybeans firm

    * Chicago wheat rises 0.7 pct, recoups last session's losses
    * Soybeans, corn firm, but U.S. crop outlook caps gains

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Aug 23 (Reuters) - Chicago wheat futures bounced
back on Thursday and recouped last session's losses, with prices
underpinned by dry weather curbing world supplies.
    Soybean and corn firmed up, although expectations of bumper
U.S. production kept a lid on prices.
    The Chicago Board of Trade most-active wheat contract
gained 0.5 percent to $5.48 a bushel by 0349 GMT after closing
0.4 percent lower on Wednesday.
    Soybeans added 0.1 percent to $8.71 a bushel while
corn rose 0.3 percent to $3.67-3/4 a bushel.
    "We saw some decline in wheat prices over the past few days,
but the downside is limited as we are looking at lower global
production and tighter supplies," said one Singapore-based
trader at an international trading company.
    The wheat market is being underpinned by drought reducing
supplies in key exporting nations.
    European farmers are counting the cost of a summer heatwave
that has shrunk cereal harvests and shrivelled pastures, leaving
some farms struggling to survive and shutting the EU out of
lucrative export markets.
    The severe weather in Europe has coincided with adverse
growing conditions in other major grain producing zones such as
Russia and Australia.
    Unfavourable spring and summer weather has worsened the
quality of Ukrainian wheat in the 2018 harvest and the share of
milling wheat does not exceed 45 percent, traders said on
Wednesday.
    Traders continued to mull over wheat export prospects from
top global supplier Russia after adverse weather reduced this
year's crop. Russia's wheat exports could fall to 31.5 million
tonnes in 2018/19 from a record 42 million last season,
consultancy Agritel said.
    Soybean and corn futures have faced pressure in recent days
on bearish findings from the annual Pro Farmer Midwest Crop
Tour. 
    The four-day tour has so far projected above-average corn
yields for Nebraska, South Dakota, Indiana and Ohio.
    Corn yield potential in western Iowa was above average as
favourable weather during planting and late in the growing
season boosted crop prospects. The soybean crop potential was
more varied, but generally higher than average.
    Commodity funds were net sellers of CBOT corn, soybean,
soymeal, soyoil and wheat futures contracts on Wednesday,
traders said.
    
 
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  548.00  2.75     +0.50%   +0.05%       555.26  42
 CBOT corn   367.75  1.00     +0.27%   -1.74%       373.87  33
 CBOT soy    871.00  0.75     +0.09%   -1.69%       880.23  42
 CBOT rice   10.78   -$0.02   -0.19%   +2.28%       $11.29  53
 WTI crude   67.93   $0.07    +0.10%   +0.86%       $68.12  59
 Currencies                                                 
 Euro/dlr    $1.155  -$0.004  -0.37%   -0.14%               
 USD/AUD     0.7290  -0.006   -0.76%   -1.07%               
 
 
 
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford and
Vyas Mohan)
  
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