June 1, 2018 / 3:32 AM / 5 months ago

GRAINS-Wheat set for weekly loss as U.S. weather improves; soybeans rebound

    * Wheat down 3 pct this week, after two weeks of gains
    * Improved U.S. weather weighs on wheat prices
    * Soybean up after 3-day losses, focus on U.S.-China trade
talks

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 1 (Reuters) - Chicago wheat is poised for
its first weekly decline in three weeks on Friday with improved
U.S. weather weighing on prices, although losses were limited by
concerns over dryness in the Black Sea region and Australia.
    Soybeans bounced back on bargain-buying after suffering
three sessions of decline on pressure from global trade
tensions.
    The most-active wheat contract on the Chicago Board Of Trade
 was unchanged at $5.26-1/4 by 0307 GMT. It is down 3
percent this week.
    Soybeans added half a percent to $10.23-1/4 a bushel,
while corn gained 0.4 percent to $3.95-3/4 a bushel. For
the week, soybeans are down nearly 2 percent and corn has lost
more than 2.5 percent, the biggest weekly loss since August
2017.
    "Those falls (in wheat futures) will have seen some
investors exit their long position. The investor exit will need
to be completed before the market could settle at somewhat
higher levels," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia, in a note.
    "The market though will only stay settled if crops elsewhere
go to plan. Right now our watch list suggests that might not be
the case. Australia's warm, dry autumn is one worry. As is the
developing dryness in significant areas of the Black Sea
region."
    Wheat has been on a rising trend amid fears that adverse
weather will curb global output, although weather forecasts
across the United States have eased the fears slightly.
    Russia is expected to reduce its 2018 crop of winter wheat
and rye by around 10 percent from a year ago due to dry weather,
a state weather forecaster said.
    Soybeans have been weighed down by heightened fears of a
global trade war, triggered after the United States said it
would impose tariffs on aluminium and steel imports from Canada,
Mexico and the European Union.
    Commodity funds were net sellers of CBOT soybeans, soymeal
and soyoil futures contracts on Thursday and net buyers of wheat
and corn, traders said. 
    Trader estimates of fund activity in corn ranged from funds
buying a net 9,000 contracts to selling a net 5,000 lots.

    
 Grains prices at  0307 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  526.25   0.00    +0.00%   -1.91%       509.96   59
 CBOT corn   395.75   1.75    +0.44%   -1.06%       399.57   45
 CBOT soy    1023.25  4.75    +0.47%   -0.70%       1029.19  51
 CBOT rice   11.54    -$0.02  -0.17%   +0.70%       $12.58   27
 WTI crude   66.96    -$0.08  -0.12%   -1.83%       $69.47   31
 Currencies                                                  
 Euro/dlr    $1.169   $0.002  +0.21%   +1.27%                
 USD/AUD     0.7558   -0.002  -0.22%   +0.72%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
       

 (Reporting by Naveen Thukral; Editing by Gopakumar Warrier)
  
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