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GRAINS-Wheat ticks up after losses, market eyes crop-weather
April 5, 2012 / 4:42 AM / in 6 years

GRAINS-Wheat ticks up after losses, market eyes crop-weather

* Wheat edges up after near 3 pct decline, corn firm
    * Crop-friendly weather in U.S. weighs on wheat, corn
    * Weaker dollar supports commodities

 (Adds details, quotes)	
    By Naveen Thukral	
    SINGAPORE, April 5 (Reuters) - Chicago wheat edged higher on
Thursday as the market took a breather following an almost 3
percent fall in the last session, triggered by crop-friendly
weather in the United States and Europe.	
    Corn was little changed after closing lower on Wednesday
with a strong start to the U.S. planting season easing concerns
over tight old-crop supplies.	
    "Follow-up rain is expected for France over the Easter
weekend and rains are also forecast for Germany and Britain,"
said Luke Mathews, commodities strategist at Commonwealth Bank
of Australia in Sydney in a report.	
    "There are favourable crop conditions in the U.S."	
    Chicago Board of Trade May wheat rose 0.2 percent to
$6.40-1/2 a bushel by 0354 GMT, while May corn gained half
a cent to $6.57-1/4 a bushel.	
    A weaker U.S. dollar, which makes greenback-priced
commodities competitive, also supported grain markets. The
dollar index was down 0.1 percent.	
    Rainfall covered much of the U.S. Plains hard red winter
wheat region this week, giving a further boost to the crop that
has already entered the growing season with high ratings.	
    Rain fell in most of France on Wednesday and forecasters
predict more showers, notably in the large grain belts in
northern France.	
    Private analytical firm Informa estimated the 2012/13 U.S.
winter wheat crop at 1.631 billion bushels, up from 1.494
billion a year earlier, adding further pressure to the wheat
    The market is awaiting results from a tender issued by
Egypt, the world's top importer, which is seeking an unspecified
amount of wheat from global suppliers for May 21-31 shipment.
    A strong start to U.S. corn plantings and near-perfect
weather have kept a lid on corn prices which rallied after a
U.S. Department of Agriculture report on Friday showed stocks at
a five-year low.	
    Meteorologists are forecasting drier weather in the next
couple of weeks which should boost corn plantings, adding
further pressure to new-crop prices amid expectations for the
largest seedings in 75 years.	
    Soybean futures, which have jumped almost 7 percent in
March, rose for a second straight day on expectations of lower
plantings in the United States and concerns over tight supplies
following a drought in Brazil and Argentina.	
    Soybeans for May delivery added 0.3 percent to
$14.23-1/4 a bushel.	
    Informa pegged the Brazilian soy crop at 66.5 million
tonnes, down from its previous estimate of 68 million, trade
sources said. It also cut its Argentine soybean production
outlook to 45 million tonnes from 47.5 million.	
    Still, analysts said the rally in soybean may be running out
of steam.	
    "It has broken past the psychological level of $14 a bushel,
and now the question is how much higher it can go?" said Abah
Ofon, commodities analyst at Standard Chartered in Singapore.   
"After the rally soybean prices are looking favourable for
planting as compared with corn."	
    In its quarterly report, the USDA in predicted U.S. farmers
would plant 2 percent less acreage of the oilseed than expected,
while estimating highest corn plantings in 75 years.	
  Prices at  0354 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     640.50     1.25  +0.20%    -2.66%     651.08   46
  CBOT corn      657.25     0.50  +0.08%    -0.15%     649.15   59
  CBOT soy      1423.25     3.75  +0.26%    +0.46%    1354.91   75
  CBOT rice      $14.84   -$0.07  -0.47%    -0.64%     $14.50   55
  WTI crude     $102.21    $0.74  +0.73%    -1.73%    $106.05   37
  Euro/dlr       $1.315  -$0.017  -1.30%    -1.56%
  USD/AUD         1.029   -0.012  -1.15%    -1.44%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 (Reporting by Naveen Thukral; Editing by Sugita Katyal)

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