September 29, 2017 / 3:48 AM / 9 months ago

GRAINS-Wheat set for biggest quarterly loss in 2 years

    * Wheat down almost 14 pct in July-Sept, 1st quarterly loss
in 4
    * Soybeans eye monthly gain, U.S. harvest keeps lid on

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 29 (Reuters) - Chicago wheat slid on Friday
with the market facing its biggest quarterly decline in two
years as record world supplies dragged down prices, although
concerns over higher quality wheat production are likely to
prevent further losses.
    U.S. soybeans edged down, but were poised to finish the
month higher on the back of strong Chinese demand.
    The Chicago Board of Trade most-active wheat contract
is down almost 14 percent in July-September, the biggest fall
since the third quarter of 2015. For the month, wheat has gained
about 4 percent, its first monthly gain in three.
    Soybeans have added 1.4 percent in September,
recouping some of the 6.2 percent loss in the previous month.
Corn has been down nearly 2 percent this month, extending
losses into a second straight month.
    "Overall if you look at the U.S. crop and other producers,
the Australian crop is the first one that has reversed the
trend," said Brett Cooper, Asia head of agricultural commodities
at brokerage INTL FCStone in Sydney.
    "At the top level, the wheat balance sheet is not
problematic. The thing to watch is when you break it down to
class and quality. There is ongoing reduction in high-protein
    The International Grains Council (IGC) has raised its
forecast for world grain production in 2017/18, with the crop
now expected to be the second-largest in history.
    The inter-governmental body, in a monthly report published
on Thursday, put total grains production at 2.069 billion
tonnes, up 19 million tonnes from its previous forecast and now
only trailing last season's record 2.133 billion tonnes. 
    Russia is set to export around 45 million tonnes of grain in
the 2017/18 marketing year, including 30 million tonnes of
wheat, Russian Agriculture Minister Alexander Tkachev said on
Thursday, with production hitting a record high.
    The U.S. Department of Agriculture (USDA) will issue the
small grains report on Friday. Analysts surveyed by Reuters on
average expect the government to lower its estimate of U.S. 2017
wheat production.
    For corn, analysts expect the USDA to report U.S. Sept. 1
corn stocks at 2.353 billion bushels, which would be the largest
since 1988.
    The USDA reported the third-largest weekly soybean export
sales total on record, at just over 3.1 million tonnes for old-
and new-crop marketing years combined.
    Of the total, 1.4 million tonnes of soybeans were earmarked
for China, the world's top buyer.
    Commodity funds were net sellers of CBOT corn, wheat,
soybean, soymeal and soyoil futures contracts on Thursday,
traders said.

 Grains prices at  0322 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  452.50  -2.50    -0.55%   -1.95%       441.99  61
 CBOT corn   351.25  -1.25    -0.35%   -0.78%       354.36  51
 CBOT soy    958.50  -1.00    -0.10%   -0.73%       956.98  44
 CBOT rice   12.04   $0.06    +0.54%   +1.13%       $12.59  35
 WTI crude   51.50   -$0.06   -0.12%   -1.23%       $49.03  64
 Euro/dlr    $1.178  -$0.001  -0.05%   +0.30%               
 USD/AUD     0.7840  -0.002   -0.20%   -0.10%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
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