February 6, 2018 / 3:07 AM / 18 days ago

GRAINS-Wheat near 1-week low on improved U.S. weather, dollar strength

    * Wheat falls for 5th session as U.S. Midwest gets snow
cover
    * Corn down 0.4 pct as firm dollar weighs on commodities

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Feb 6 (Reuters) - Chicago wheat futures slid for
a fifth consecutive session on Tuesday with prices weighed down
by improved weather across the U.S. Midwest that boosted
expectations of higher yields. 
    Corn lost ground along with soybeans with forecasts of rains
in Argentina which could help limit the drought damage to crops
in one of the world's top producers of the oilseed.
    "Speculative weather concerns had driven wheat prices higher
but now we have seen beneficial weather in the Midwest. There
are expectations of rains for soybeans and corn in Argentina,"
said Phin Ziebell, agribusiness economist at National Australia
Bank.
    "When there are no supply concerns how do you keep the rally
going."
    The Chicago Board of Trade most-active wheat contract
fell 0.1 percent at $4.40 a bushel by 0241 GMT after dropping
1.5 percent on Monday to its weakest since Jan. 26 at $4.40-1/4
a bushel.
    Soybeans were down 0.1 percent at $9.69-1/4 a bushel,
after earlier falling to their lowest since Jan. 18 at $9.67-3/4
a bushel. Corn was down 0.4 percent at $3.57-1/2 a bushel,
having closed down 0.8 percent in the previous session.
    Wheat prices came under pressure as favorable weather was
expected to aid U.S. crops that have suffered from recent dry
weather.
    Storms this week should bring beneficial moisture to U.S.
winter wheat areas, with snow in the Midwest and rain in the
Southeast.
    For corn and soybeans, rains expected next week could
contain drought damage to Argentine soy crops, the Buenos Aires
Grains Exchange's weather forecaster said on Monday, but added
that the arid conditions could dramatically reduce the harvest.

    The U.S. Department of Agriculture reported export
inspections of U.S. corn in the latest week at 1.07 million
tonnes, slightly above a range of trade expectations.

    There was additional pressure on commodities stemming from a
stronger dollar which makes the dollar-denominated products
expensive for importers holding other currencies.
    The dollar rose on Tuesday as a rout in global equities
prompted anxious investors to seek shelter in the relative
safety of the greenback, with peers like the euro on the
defensive.
    Commodity funds were net sellers of CBOT soybean, corn,
wheat, soymeal and soyoil futures on Monday, traders said. 
    Trade estimates of net fund selling in corn ranged from
5,000 to 14,000 contracts.
    
 Grains prices at 0241 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  440.00  -0.25    -0.06%   -2.44%       432.56  51
 CBOT corn   357.50  -1.25    -0.35%   -1.17%       353.35  47
 CBOT soy    969.25  -0.50    -0.05%   -1.60%       973.18  35
 CBOT rice   12.49   -$0.04   -0.32%   +0.69%       $12.09  69
 WTI crude   63.34   -$0.81   -1.26%   -3.22%       $63.13  39
 Currencies                                                 
 Euro/dlr    $1.237  -$0.005  -0.43%   -0.24%               
 USD/AUD     0.7866  -0.024   -3.00%   -2.02%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
             

 (Reporting by Naveen Thukral
Editing by Christian Schmollinger)
  
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