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GRAINS-U.S. soybean extends gains; wheat, corn rise
March 14, 2012 / 6:02 AM / 6 years ago

GRAINS-U.S. soybean extends gains; wheat, corn rise

* Soybean again rise on tight South American supplies
    * China seen buying more soybeans, mainly from U.S.
    * Wheat edges up on lower Ukraine harvest forecast

    By Mayank Bhardwaj	
    NEW DELHI, March 14 (Reuters) - U.S. soybean futures
for May extended gains on Wednesday after rallying more than 1
percent a day earlier due to mounting concerns over tight
supplies from drought-hit South America.	
    Lower output forecast by Ukraine helped wheat edge higher,
while corn rose as the United States Department of Agriculture
(USDA) confirmed large exports to an unknown buyer, believed to
be China.	
    Chicago Board of Trade soybean for May delivery rose
0.52 percent to $13.55-3/4 a bushel by 0445 GMT, after closing
at its highest level since mid-September 2011.	
    May wheat gained 0.08 percent to $6.49-1/2 a bushel,
while corn rose 0.04 percent to $6.62-1/4 a bushel.	
    "Production estimates have been lowered again by a number of
forecasters, including the USDA and that is the reason behind
the rise in soybeans," said Malcolm Bartholomaeus, editor of
ProFarmer, a Perth-based farm advisory.	
    Drought has reduced Brazil's soybean crop by 9 percent in
the past three months and Argentina's harvest by 11 percent, the
U.S. Department of Agriculture (USDA) said on Friday, with the
cuts larger than traders had expected. 	
    Brazil and Argentina together grow almost half of the
world's soybeans and oilseed analysts Oil World said export
prospects for U.S. soybeans were improving, as demand from China
is likely to increase. 	
    "The crop outlook looks poor in South America while demand
for beans and oils look very strong from a number of countries,
including China," Bartholomaeus said. "Buyers are stocking up
soybeans by purchasing from the U.S."	
    There are reports of water scarcity in China's own soybean
belts and there is also talk that China will transfer more land
to corn from soybean in an attempt to become self-sufficient in
grains, Oil World said. Last month, China signed deals with U.S.
grain companies to buy 8.62 million tonnes of soybeans.	
    U.S. wheat prices, which had drifted lower on Tuesday under
pressure from improving U.S. crop weather, rose slightly,
catching up with gains in the European market due to strong
French demand.	
    Prices were also supported by Ukraine's Agriculture Ministry
cutting its 2012 wheat harvest forecast to 14 million tonnes,
down 2 million tonnes, after winter plantings suffered from
drought and frost. 	
 Grains prices at  0446 GMT
 Contract       Last   Change  Pct chg  Two-day chg  MA  30 RSI 
 CBOT wheat     649.50   0.50  +0.08%    -0.27%     654.78   51
 CBOT corn      662.25   0.25  +0.04%    +0.42%     645.48   65 CBOT soy      1355.75   7.00  +0.52%    +1.59%    1286.53   83 CBOT rice      $14.36  $0.02  +0.14%    +0.07%     $14.30   56
 WTI crude     $106.83  $0.12  +0.11%    +0.46%    $103.74   55
 Euro/dlr       $1.307  -$0.008  -0.61%    -0.29%
 USD/AUD         1.055    0.004  +0.34%    -0.14%

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