September 14, 2017 / 4:03 AM / 6 months ago

GRAINS-Wheat up for 3rd day on short-covering, USDA supply forecast

    * USDA trims world wheat ending stocks forecast for 2017/18
    * Chicago soybean, corn futures rise on bargain-buying

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Sept 14 (Reuters) - Chicago wheat futures rose
for a third consecutive session on Thursday, with prices
underpinned by short-covering and U.S. government forecasts of
slightly lower global supplies.
    Soybeans edged higher, although gains were checked by the
U.S. Department of Agriculture's (USDA) outlook for record-sized
North American production.
    The Chicago Board of Trade most-active wheat contract
had added 0.3 percent to $4.44-1/2 a bushel by 0322 GMT, having
closed up 0.3 percent on Wednesday.
    Soybean prices were up 0.5 percent at $9.65 a bushel,
after firming 1.1 percent in the last session. Corn gained
0.6 percent to $3.53-1/2 a bushel, having closed unchanged on
    "When you look at wheat prices, we have to see what funds
are doing," said a Singapore-based trader. "The USDA has reduced
its supply estimate, but there is still plenty of wheat around,
we don't see this price move as very significant."
    Commodity funds were net buyers of CBOT wheat for a second
day in a row on Wednesday. They were net buyers in soybean
futures and net sellers of corn contracts, traders said.

    The USDA in its monthly supply-demand report trimmed world
wheat ending stocks forecast for 2017/18 to 263.14 million
tonnes, from 264.69 million in August.
    In signs of abundant supplies, French soft wheat exports
outside the European Union could more than double in 2017/18
from last season when they plunged after a poor harvest in the
EU's largest wheat producer, farm office FranceAgriMer said.

    Soybeans were under pressure from the USDA's forecast on
Tuesday for a record-large U.S. 2017 soybean harvest totalling
4.431 billion bushels, with an average yield of 49.9 bushels per
acre (bpa).
    The USDA said private exporters sold 167,370 tonnes of U.S.
soybeans to Mexico for delivery in the 2017/18 marketing year
that began Sept. 1.
    For corn, the farm department pegged U.S. yields at 169.9
bpa. The government's yield estimates for both crops were above
most analyst estimates.
    The spotlight is now turning to South America where farmers
will start planting corn and soybeans. 
    Dry conditions could slow seeding in parts of Brazil, while
excessive rains are threatening seedings in parts of Argentina.

 Grains prices at  0322 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  444.50  1.25     +0.28%   +0.57%       448.83  53
 CBOT corn   353.50  2.00     +0.57%   +0.57%       363.16  40
 CBOT soy    965.00  4.50     +0.47%   +1.53%       949.76  54
 CBOT rice   12.85   -$0.06   -0.50%   -0.81%       $12.65  62
 WTI crude   49.22   -$0.08   -0.16%   +2.05%       $48.10  61
 Euro/dlr    $1.188  -$0.001  -0.07%   -0.74%               
 USD/AUD     0.8005  0.002    +0.26%   -0.16%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
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