September 17, 2018 / 2:39 AM / 3 months ago

GRAINS-Wheat up for 2nd day on Russian supply concerns, soybeans extend losses

    * Russian grain quality controls seen slowing wheat exports
    * Soybeans fall for 3rd session as record U.S. crop looms

 (Adds details on Russian supply issues, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 17 (Reuters) - Chicago wheat futures rose
for a second session Monday, with the market hitting its highest
since Sept. 12 on concerns over quality controls in Russia that
are expected to delay shipments from the world's biggest
supplier.
    Soybeans lost more ground, falling for four out of five
sessions, as an all-time high U.S. crop weighed on the market.
    The most-active wheat contract on the Chicago Board Of Trade
 gained 0.5 percent to $5.14 a bushel by 0217 GMT, after
earlier climbing to its highest since Sept. 12 at $5.18 a
bushel.
    Soybeans slid 0.6 percent to $8.25-1/4 a bushel,
having closed down 0.3 percent on Friday and corn lost 0.4
percent to $3.50-1/4 a bushel, having gained 0.4 percent in the
previous session.
    "As the global wheat balance sheet continues to tighten, we
expect prices to remain supported," said Ole Houe, director of
advisory services at brokerage IKON Commodities in Sydney.
   "Drought conditions which devastated the European and Russian
crops this season warrant a harsher slash to final yield
estimates."
    The wheat market is being underpinned by fears that Russia
could limit exports.
    Russia's food safety watchdog has beefed up quality controls
on grain exports due to complaints from major buyers and the
lower quality of the crop, it said on Friday, adding that the
more stringent checks were not aimed at limiting grain exports.

    Traders have been watching for any changes to regulations,
which have been used in the past to place informal curbs on
exports. Some traders said the new controls were excessive and
could cause delivery disruptions on signed contracts.
    Soybeans faced pressure as U.S. farmers gear up to harvest
their biggest crop.
    U.S. soybean plants continued their recent strong crushing
pace in August to capitalize on robust profit margins for
processing the oilseed into meal and oil, analysts said ahead of
a monthly National Oilseed Processors Association (NOPA) report.

    NOPA members, who handle about 95 percent of all soybeans
processed in the United States, likely crushed 163.870 million
bushels of soybeans last month, according to an average of
estimates given by eight analysts in a Reuters survey.
    U.S. President Donald Trump is likely to announce new
tariffs on about $200 billion of Chinese imports as early as
Monday, a senior administration official told Reuters on
Saturday, weighing on market sentiment towards soybeans.

    Large speculators increased their net short position in CBOT
corn futures in the week to Sept. 11, regulatory data released
on Friday showed.
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and soybeans.

 Grains prices at 0217 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  514.00  2.50    +0.49%   +3.42%       542.92  56
 CBOT corn   350.25  -1.50   -0.43%   -0.07%       367.78  51
 CBOT soy    825.25  -5.25   -0.63%   -0.96%       860.18  43
 CBOT rice   10.49   $0.00   +0.00%   -2.42%       $10.74  32
 WTI crude   68.88   -$0.11  -0.16%   +0.42%       $68.10  49
 Currencies                                                
 Euro/dlr    $1.163  $0.000  -0.01%   -0.52%               
 USD/AUD     0.7150  0.000   +0.00%   -0.58%               
 
 
 
    

 (Reporting by Naveen Thukral; editing by Richard Pullin)
  
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