July 30, 2018 / 3:40 AM / 4 months ago

GRAINS-Wheat rebounds on supply concerns, soybeans hit 3-week high

    * Wheat gains 1 pct as dryness in key areas curbs global
supplies
    * Soybeans at highest since July 9 on hopes of strong U.S.
exports

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, July 30 (Reuters) - Chicago wheat futures bounced
back on Monday, reversing a two-day down trend as prices were
supported by dry conditions that threaten to reduce global
supply. 
    Soybeans climbed to a three-week high as strong demand for
U.S. supplies underpinned prices.
    The Chicago Board Of Trade most-active wheat contract
gained 1 percent to $5.35-3/4 a bushel by 0258 GMT, having
closed down 1.1 percent on Friday.
    Soybeans were up 0.2 percent to $8.87-1/4 a bushel,
after climbing to their highest since July 9 at $8.96-1/2 a
bushel. Corn was up 0.4 percent to $3.77-3/4 a bushel.
    "We have seen some decline in prices over the past two
sessions but dryness in Australia, Black Sea region and parts of
Europe is driving prices higher today," said Phin Ziebell, an
agribusiness economist at National Australia Bank.
    "But upside is limited as supplies are still ample," Ziebell
noted.
     World wheat production is set to fall to a five-year low
following significant downgrades to crop prospects in the
European Union and Russia, the International Grains Council said
last week.
    Scouts on an annual crop tour of North Dakota, the top U.S.
spring wheat producer, found below-average harvest potential in
this year's crop, with hot weather likely to curb production.
    The crop was likely to fall well below the USDA's projection
for record-tying yields.
    U.S. soybeans were being quoted at a deep discount to
supplies from Brazil, prompting a pick-up in demand from many
countries even as China, the world's top buyer of the oilseed,
continues to shun U.S. soybeans because of the two countries'
trade disputes. 
    Traders say China will be forced to pick up some U.S.
soybeans to meet its needs in the months ahead as South American
supplies dwindle.
    Commerce Department data released on Friday showed that the
U.S. economy grew at its fastest pace in nearly four years in
the second quarter as consumers boosted spending and farmers
rushed shipments of soybeans to China to beat retaliatory trade
tariffs before they took effect in early July.
    Commodity funds were net buyers of CBOT corn, soybeans and
soyoil contracts on Friday and net sellers of soymeal and wheat
contracts, traders said.
    
 Grains prices at 0258 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  535.75  5.25     +0.99%   -1.29%       501.88  68
 CBOT corn   377.75  1.50     +0.40%   +1.21%       368.65  69
 CBOT soy    887.25  2.00     +0.23%   +1.31%       878.66  69
 CBOT rice   12.01   $0.00    +0.00%   -0.33%       $11.97  54
 WTI crude   68.84   $0.15    +0.22%   -1.11%       $70.08  47
 Currencies                                                 
 Euro/dlr    $1.165  -$0.003  -0.29%   -0.34%               
 USD/AUD     0.7386  -0.003   -0.46%   +0.09%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, additional reporting by Colin
Packham
Editing by Eric Meijer)
  
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