June 6, 2018 / 3:04 AM / 3 months ago

GRAINS-Wheat rises for 2nd day on global supply concerns

    * Dry weather in Russia, Australia supports wheat prices
    * Soybeans rise on hopes of Chinese demand, corn firms

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 6 (Reuters) - Chicago wheat rose for a
second session on Wednesday with prices underpinned by concerns
over global supplies following dry weather in the United States,
Russia and Australia.
    Corn gained after dropping in the last session to its lowest
since April 20 while soybeans rose on expectations of Chinese
demand for U.S. supplies.
    The Chicago Board Of Trade most-active wheat contract
added 0.6 percent at $5.13 a bushel by 0240 GMT, having closed
up 0.9 percent on Tuesday. 
    Corn rose 0.7 percent to $3.86-1/4 a bushel and
soybeans gained 0.6 percent to $10.07-1/2 a bushel.
    "Importers are not really concerned at this stage but
clearly prices are going to move higher," said one
Singapore-based wheat trader at an international trading
company.
    "There are weather issues in Russia and Australia on top of
dry growing season that we saw for the U.S. winter crop."
    The U.S. Department of Agriculture late Monday rated 37
percent of the U.S. winter wheat crop in good to excellent
condition, down from 38 percent a week earlier.
    Dryness is raising worries over world supplies in parts of
Russia, the world's top exporter, and Australia, typically the
world's No. 4 supplier.
    The USDA saw the U.S. corn crop as 78 percent good to
excellent, down from 79 percent the previous week. But ratings
were still among the highest for this point in the season over
the last 20 years.
    The USDA rated 75 percent of the U.S. soybean crop as good
to excellent in its initial rating of the crop, boosting
expectations for a big 2018 harvest.
    Tensions between the United States and major trading
partners hang over the market. Mexico imposed tariffs on
American products ranging from steel to pork and bourbon,
retaliating against import duties on metals imposed by President
Donald Trump.
    However, CBOT soybeans appeared to draw support from news of
an offer by China to import an extra $70 billion of American
goods over a year. China is the world's biggest soy importer.
Trump was to meet with his trade advisers to discuss China's
offer.
    Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Tuesday, net sellers of soybeans and
soymeal and net even in soyoil, traders said.
    
 Grains prices at  0240 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  513.00   3.00    +0.59%   +1.53%       514.12   48
 CBOT corn   386.25   2.50    +0.65%   +1.44%       399.08   37
 CBOT soy    1007.50  6.25    +0.62%   +0.57%       1024.92  41
 CBOT rice   10.93    -$0.02  -0.14%   -2.54%       $12.29   15
 WTI crude   65.69    $0.17   +0.26%   +1.45%       $69.14   33
 Currencies                                                  
 Euro/dlr    $1.172   $0.000  +0.02%   +0.18%                
 USD/AUD     0.7650   0.004   +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; Editing by Sunil Nair)
  
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