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GRAINS-Wheat firms as US crop deteriorates, soy up for 2nd day
November 14, 2012 / 3:27 AM / 5 years ago

GRAINS-Wheat firms as US crop deteriorates, soy up for 2nd day

* Wheat ticks up as dry weather hurts U.S. crop
    * U.S. wheat competitive as global supply shrinks
    * Concerns over global economic growth caps gains
    * Soybeans rise for 2nd day on bargain hunting

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Nov 14 (Reuters) - Chicago wheat edged higher on
Wednesday, snapping a three session declining streak, as a
further decline in the condition of the U.S. winter crop
supported the market.
    Soybeans rose for a second straight session with a fall in
prices to a four-and-half month low boosting demand from the end
users, while corn gained as tight global supplies continue to
underpin the market.
    The gains in agricultural markets were capped by concerns
over global economic uncertainty which weighed on commodities,
including oil and metals.
    Asian shares and the euro steadied on Wednesday but lacked
the impetus for a decisive rebound, as investors continued to
fret about the looming "fiscal cliff" in the United States and a
delay in releasing more aid to debt-stricken Greece. 
    "I think the U.S. wheat crop condition is deteriorating
which is quite bullish for the market," said Ker Chung Yang, a
senior investment analyst at Phillip Futures in Singapore. "But
there is uncertainty in the market as macro-economic sentiment
is getting weaker, which is keeping a lid on prices."
    Chicago Board of Trade's most active January soybeans 
rose 0.8 percent to $14.19-1/4 a bushel by 0255 GMT, while
December wheat added 0.1 percent to $8.52 a bushel.
December corn gained 0.4 percent to $7.26-1/2 a bushel.
    Crop ratings for the developing U.S. wheat crop fell 3
percentage points, more than expected, to a new November low due
to dry conditions in critical growing areas of the U.S. Plains,
according to the U.S. Department of Agriculture. 
    The USDA said the crop was rated 36 percent good to
excellent as of Nov. 9, down from 39 percent a week earlier. A
year ago, the crop was rated 50 percent good to excellent.
    Dry weather is expected to continue in the western portion
of the U.S. Plains hard red winter wheat region for the next 15
days, said Don Keeney, meteorologist for MDA EarthSat Weather.
    Some eastern areas will receive showers, which will benefit
the crop as it heads toward dormancy.
    The U.S. wheat is becoming more competitive in the world
market as supplies from the Black Sea region shrink and
Australia produces a smaller crop, traders said.
    The soybean market was supported by expectations of a
rebound in demand from China, the world's top importer, after
prices slid to their lowest since mid-June on Tuesday.
    The USDA said export inspections of soybeans for the week
ended on Thursday reached 64.1 million bushels, topping trade
expectations for 53 million to 59 million bushels.
    The National Oilseed Processors Association's monthly
soybean crush data scheduled for release on Wednesday should
show the U.S. crush for October at 147.713 million bushels,
analysts projected.
    If realized, the figure would mark the industry group's
biggest October crush since 2010 and the highest monthly total
reported by NOPA since November 2010.
    The USDA gave corn a slight boost by reporting that private
exporters struck deals to sell 158,496 tonnes of U.S. corn to
unknown destinations. 
    Commodity funds bought 5,000 CBOT corn contracts on Tuesday,
trade sources said. They bought 6,000 soybean and sold 3,000
wheat contracts. 
  Prices at 0255 GMT
  Contract        Last    Change  Pct chg  MA 30   RSI 
  CBOT wheat     852.00     1.00  +0.12%   872.81   37
  CBOT corn      726.50     3.00  +0.41%   766.13   39
  CBOT soy      1419.25    11.25  +0.80%  1577.85   29
  CBOT rice      $14.79    $0.00  +0.00%   $15.46   34
  WTI crude      $85.40    $0.02  +0.02%   $88.83   45
  Euro/dlr       $1.272   $0.043  +3.52%   
  USD/AUD         1.044   -0.011  -1.05%   
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 (Reporting by Naveen Thukral; Editing by Ed Davies)

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