January 18, 2018 / 3:21 AM / 6 months ago

GRAINS-Wheat up for 2nd day on short-covering; ample supplies cap gains

    * Wheat rises as market continues to recover from 1-month
low
    * Funds covering short-positions, global oversupply to limit
gains
    * Corn eases after 2-day rally, soybeans little changed

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Jan 18 (Reuters) - Chicago wheat rose for a
second consecutive session on Thursday, with prices underpinned
by short-covering and expectations of demand for U.S. shipments
after prices dropped to a one-month low earlier this week. 
    Corn inched down for the first time in three sessions,
though prices remained near a two-week high hit the previous
day.
    The Chicago Board of Trade most-active wheat contract
rose 0.2 percent to $4.22-1/4 a bushel by 0245 GMT, after
closing up 1.2 percent on Wednesday. 
    Corn slid 0.1 percent to $3.52-1/2 a bushel following
a 1.4 percent gain in the previous session when prices touched
their highest since Jan. 4 at $3.53-1/4 a bushel.
    Soybeans were little changed at $9.68-1/4 a bushel,
having firmed 0.1 percent on Wednesday.
    Commodity funds were net buyers of CBOT corn, wheat, soybean
and soymeal futures contracts on Wednesday and net sellers of
soyoil futures, traders said. Trader estimates of net fund
buying in corn were in a wide range from 12,000 to 25,000
contracts.
    Under pressure from abundant global supplies, Chicago wheat
dipped to its lowest since Dec. 13 on Tuesday, lifting hopes
that buyers would find U.S. wheat competitive. 
    "Buyers might finally have emerged given the U.S. wheat, via
lower prices and a lower greenback, will have cheapened
considerably over the past week," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia.
    A weaker dollar, which makes U.S. commodities cheaper for
importers holding other currencies, added to the bullish
sentiment.
    The U.S. dollar has dropped to its lowest in three years
against a basket of currencies.
    Corn had been under sustained pressure after the U.S.
Department of Agriculture crop report last week showed massive
stocks and a bigger-than-expected U.S. harvest. But failure to
extend those losses since then prompted speculation that a
near-term low had been achieved.
    A drought in the heart of Argentina's Pampas grains belt is
expected to reduce corn yields and cut up to 3.7 million tonnes
from the projected 2017/18 harvest, local analysts said on
Wednesday.
    For soybeans, Brazil's Mato Grosso soybean producers have
sold less of their new-crop beans so far than they did last
year, when sales were already late compared with long-term
averages, as they hoard grains in the hope of better prices
ahead.

 Grains prices at 0245 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  422.25  0.75     +0.18%   +0.42%       425.08  45
 CBOT corn   352.50  -0.50    -0.14%   +1.81%       350.39  59
 CBOT soy    969.25  0.50     +0.05%   +0.91%       975.88  61
 CBOT rice   12.21   $0.05    +0.45%   +3.34%       $12.06  73
 WTI crude   64.22   $0.25    +0.39%   +0.77%       $59.89  79
 Currencies                                                 
 Euro/dlr    $1.220  -$0.006  -0.52%   -0.54%               
 USD/AUD     0.7965  0.000    +0.06%   +0.03%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
          

 (Reporting by Naveen Thukral; Editing by Biju Dwarakanath)
  
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