June 11, 2018 / 3:31 AM / 13 days ago

GRAINS-Wheat rebounds on supply issues, soybeans pressured by crop-friendly U.S. weather

    * Chicago wheat up 0.9 pct, rises for 4th session in five
    * Expectations of lower output in Russia, Ukraine support
prices
    * Near-perfect weather for soybeans, corn in the U.S.
Midwest

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 11 (Reuters) - Chicago wheat futures gained
almost 1 percent on Monday, rising for a fourth session in five,
as expectations of lower production in the Black Sea region
supported the market.
    Soybeans edged higher but the market traded near last
session's lowest since mid-January as near-perfect weather
across the U.S. Midwest raised hopes of a bumper harvest.
    "News flow is supportive for wheat prices, we have a severe
drought cutting Russian output," said one India-based
agricultural commodities analyst.
    "But the upside might be limited as stocks are still pretty
big in the United States and fresh supplies from the northern
hemisphere harvest have started coming to the market."
    The Chicago Board of Trade most-active wheat contract
had gained 0.9 percent to $5.24-1/2 a bushel by 0311 GMT.
    Soybeans rose 0.1 percent to $9.70-1/4 a bushel, not
far from last session's lowest since Jan. 17 at $9.62-1/2 a
bushel, and corn climbed 0.2 percent to $3.78-1/2 a
bushel.
    Dry weather in top wheat exporters Russia and Ukraine is
underpinning the wheat market.
    Russia's wheat production is expected to decline to around
72 million tonnes in the year to June 2019, compared with a
record output of 84.99 million tonnes this year, according to
the U.S. Department of Agriculture.
    Severe drought in eastern and southern regions could shrink
Ukraine's 2018 wheat harvest by 15-30 percent below original
forecasts, the state hydrometeorological centre said on Friday.

    Still, relieved farmers in Australia's export-focused west
are celebrating good rainfall at the end of the winter
wheat-planting window, although conditions remain parched in the
eastern states.
    The rain has provided relief to some parts of the country
after difficult conditions threatened to cut crop yields for a
second successive season in the world's fourth-largest wheat
exporter.
    Rainy conditions across the heart of the Midwest farm belt
pressured grain prices this week as recently planted corn and
soybean crops are off to a strong start to the growing season.
The U.S. Agriculture Department's crop condition ratings are
among the highest on record for both crops.
    Large speculators cut their net long position in CBOT corn
futures in the week to June 5, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.
    
 Grains prices at  0311 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  524.50  4.50    +0.87%   +0.91%       516.43   52
 CBOT corn   378.50  0.75    +0.20%   +0.07%       397.60   28
 CBOT soy    970.25  1.00    +0.10%   -2.41%       1020.00  19
 CBOT rice   11.17   -$0.01  -0.09%   -3.33%       $12.18   37
 WTI crude   65.69   -$0.05  -0.08%   -0.39%       $68.88   39
 Currencies                                                 
 Euro/dlr    $1.179  $0.000  -0.04%   +0.16%                
 USD/AUD     0.7603  -0.002  -0.29%   -0.82%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
        

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  
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