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GRAINS-U.S. soy rises on drought in South America
March 14, 2012 / 1:16 AM / 6 years ago

GRAINS-U.S. soy rises on drought in South America

SYDNEY, March 14 (Reuters) - Chicago soy futures
extended gains on Wednesday, after closing at their highest
level in 5-1/2 months in the previous session, on worries over
tighter supplies in the wake of a drought in South America.	
    * U.S. soybean rose 0.3 percent to $13.52-1/2 by 0029
GMT, after rising 1.1 percent to close at $13.48-3/4 a bushel on
Tuesday. Wheat remained unchanged at $6.49 while corn slipped
0.2 percent to $6.61 per bushel.	
    * Noted crop forecaster Michael Cordonnier reduced his
Brazilian soy crop projection to 67 million tonnes this week,
down 1 million from his previous forecast and below the USDA's 
latest view of 68.5 million tonnes. Cordonnier pegged the
Argentine crop at 47 million tonnes, above USDA's 46.5 million.	
    * South America's drought withered Brazil's big soybean crop
by 9 percent in the past three months, and the crop in Argentina
by 11 percent, the U.S. government said last week.
    * Export prospects for U.S. soybeans were improving despite
rising prices as many global buyers had expected more South
American supplies to be available, analysts with Oil World said.
    * Ukraine's Agriculture Ministry has cut its 2012 wheat
harvest forecast to 14 million tonnes from 16 million tonnes,
Minister Mykola Prysyazhnyuk said on Tuesday, after winter
plantings suffered from drought and frost. 	
    * Unseasonably warm weather for at least the next two weeks
in the U.S. Midwest and Plains will allow rapid growth of the
winter wheat crop, analysts said.	
    * Argentina's government is modifying its unpopular corn
export system, scrapping incremental quotas that farmers said
depressed prices but keeping a cap on total sales abroad to
ensure domestic needs are met. 	
    * Unseasonably warm weather for at least the next two weeks
in the U.S. Midwest and Plains will allow rapid growth of the
winter wheat crop, boost early spring fieldwork, and permit some
early planting of the 2012 corn crop. 	
    * The dollar was broadly firmer early in Asia on Wednesday,
having hit a seven-week high against a basket of major
currencies as prospects for further easing by the Federal
Reserve faded in the wake of more upbeat U.S. data.   	
    * U.S. crude futures rose for a second day on Wednesday on
the back of an improved outlook of the world's top economy, but
the gains were limited after industry data showed a
bigger-than-expected build-up in U.S. crude inventories.  	
    * The U.S. stock market posted its best day this year, with
Tuesday's late spark coming from JPMorgan Chase & Co after the
bank announced it will raise its dividend. 	
    Data / Events	
 0430  Japan  Industrial output rev      Jan        	
 0800  OECD   IEA Oil Market Report      Sep            	
 1000  EZ     Industrial production yy   Jan        	
 1000  EZ     Inflation, final yy        Feb       	
 1130  U.S.   Import prices mm           Feb        	
 1130  U.S.   Current account            Oct       	
 1130  U.S.   NOPA soy crush             Feb        	
  Grains prices at  0029 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     649.00     0.00  +0.00%    -0.35%     654.78   51
  CBOT corn      661.00    -1.00  -0.15%    +0.23%     645.38   67
  CBOT soy      1352.50     3.75  +0.28%    +1.35%    1286.46   83
  CBOT rice      $14.32   -$0.02  -0.10%    -0.17%     $14.30   56
  WTI crude     $106.67   -$0.04  -0.04%    +0.31%    $103.74   54
  Euro/dlr       $1.307  -$0.002  -0.12%    -0.63%
  USD/AUD         1.052   -0.002  -0.16%    +0.15%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 (Reporting by Pauline Askin; Editing by Himani Sarkar)

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