May 25, 2018 / 1:08 AM / in 3 months

GRAINS-Wheat set for weekly gain pct as dry weather threatens global output

    SYDNEY, May 25 (Reuters) - U.S. wheat edged up on Friday,
holding near a 10-month high reached in the previous session, as
concerns over dry weather in major global exporters put the
grain on track for a second weekly gain. 
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board
Of Trade is up nearly 2.5 percent for the week so far, extending
two-week gains to more than 6 percent.
    * Wheat hit a high of $5.45-1/4 a bushel on Thursday, the
highest since July 2017.
    * The most active soybean futures is up nearly 4
percent for the week, on course to post the biggest weekly gain
since July 2017.
    * The most active corn futures is up nearly 0.5
percent for the week, set for a second straight weekly gain.
    * Forecasts for hot, dry conditions in the U.S. Plains wheat
belt has fuelled concerns about drought-reduced crops in key
production areas.
    * Meanwhile, dry weather in parts of Canada, Australia and
Russia - all major wheat exporters - have fuelled expectations
of a tightening supply balance after record inventories had been
forecast for this season.
    * Dry weather in wheat areas of southern Russia over the
next 10 days could deplete subsoil moisture there to the lowest
since at least 2008, Radiant Solutions said.
    * A Chinese importer on Tuesday purchased one cargo of U.S.
soybeans for August shipment from the U.S. Pacific Northwest,
according to traders, marking the first sale of U.S. soybeans to
China since the two countries stepped back from a full-blown
trade war.
         
    MARKET NEWS  
    * The dollar slipped against a basket of currencies on
Thursday and hit a two-week low against the Japanese yen, after
U.S. President Donald Trump scrapped a summit meeting with North
Korean leader Kim Jong Un and as traders booked profits
following the greenback's recent rally.  
    * Oil prices fell about $1 on Thursday, with expectations
building that reduced supplies from Venezuela and Iran could
prompt OPEC to wind down output cuts in place since the start of
2017.  
    * U.S. stocks ended down slightly on Thursday after
President Donald Trump cancelled a planned summit with North
Korea's Kim Jong Un and threatened to impose tariffs on auto
imports, though losses were limited by gains in Netflix and
General Electric.  

    DATA AHEAD (GMT)
0800  Germany             Ifo business climate            May
0830  UK                  GDP 2nd release                 Q1
1230  U.S.                Durable goods                   Apr
        
 Grains prices at  0038 GMT
 Contract        Last  Change  Pct chg  Two-day chg    MA 30  RSI
 CBOT wheat    531.50    1.25   +0.24%       +0.09%   504.94   68
 CBOT corn     404.50    0.25   +0.06%       -0.98%   398.99   61
 CBOT soy     1038.50    2.75   +0.27%       -0.07%  1032.01   64
 CBOT rice      11.51  -$0.05   -0.48%       -3.48%   $12.76   17
 WTI crude      70.74   $0.03   +0.04%       -1.53%   $69.59   47
 Currencies                                                      
 Euro/dlr      $1.172  $0.000   -0.01%       +0.19%              
 USD/AUD       0.7570   0.000   -0.05%       +0.15%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Richard Pullin)
  
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