May 17, 2018 / 3:36 AM / 6 days ago

GRAINS-Wheat rises for 3rd session on U.S. dryness; soybeans rebound

    * Wheat gains more ground as dry weather seen curbing U.S.
yields
    * Drought in Australia but crop has long way to go, corn
rises

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 17 (Reuters) - Chicago wheat futures rose for
a third consecutive session on Thursday with prices underpinned
by bargain-buying and dry weather in key producers the United
States and Australia.
    Soybeans firmed with the market taking a breather after
Wednesday's deep losses which were triggered by fears about
Chinese demand for U.S. supplies amid a trade war between the
two nations.
    The Chicago Board Of Trade most-active wheat contract
gained 0.8 percent to $4.98 a bushel by 0311 GMT.ff
    Soybeans were up 0.5 percent at 10.04-1/2 a bushel
after dropping to their lowest since April 4 at $9.98 a bushel
earlier in the session. Corn added 0.3 percent to
$4.00-1/4 a bushel, having closed down 0.8 percent in the
previous session.
    "There is some support for the wheat market at current
levels because of a drought in the U.S. southern Plains. The
USDA is showing some improvement in crop rating but there will
be yield losses," said one India-based agricultural commodities
analyst.
    "There is drought in Australia but crop there has a long way
to go. Overall, we don't see a major rally in wheat prices as
the market is very well supplied."
    Australian farmers are planting wheat in some of the driest
soils in years, following on from a severe drought that cut
2017/18 output in the world's fourth-largest exporter to the
lowest in a decade.
    But rains later this month or early June could prevent a
decline in yields. 
    For soybeans, the market is focused on the outcome of trade
talks between the United States and China. Chinese demand for
U.S. shipments has taken a hit since Beijing proposed import
duties last month.
    Brazilian farmers looking to expand soybean acreage next
season to meet strong Chinese appetite will have to weigh rising
land costs in farm country, growers and analysts said on a crop
tour of fields in Mato Grosso.
    Producers in the country's No.1 grain state may prefer to
spend the returns from recent bumper crops on boosting the
productivity of their existing farms, they said, for example by
buying better equipment.
    Commodity funds were net sellers of CBOT soybean, corn,
wheat, soymeal and soyoil contracts on Wednesday, traders said.

    
 Grains prices at  0311 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  498.00   3.75    +0.76%   +0.91%       499.63   46
 CBOT corn   400.25   1.00    +0.25%   -0.50%       397.78   60
 CBOT soy    1004.50  4.75    +0.48%   -1.40%       1038.82  41
 CBOT rice   12.55    -$0.01  -0.04%   +0.48%       $12.98   49
 WTI crude   71.76    $0.27   +0.38%   +0.63%       $68.37   71
 Currencies                                                  
 Euro/dlr    $1.183   $0.002  +0.19%   -0.06%                
 USD/AUD     0.7544   0.003   +0.40%   +0.98%                
 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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