October 2, 2014 / 12:17 PM / 6 years ago

GRAINS-Wheat rebounds from four-year low on exports, soy firm

* CBOT wheat sets two-week high, less Russian competition
seen
    * Corn, soy bounce from multi-year lows as rain slows
harvest
    * Gains limited by rising U.S. crop production estimates

 (Updates with closing prices)
    By Julie Ingwersen
    CHICAGO, Oct 2 (Reuters) - U.S. wheat futures set a two-week
high on Thursday, rebounding from last week's four-year lows on
larger-than-expected weekly export sales data, traders said.
    Soybeans and corn firmed after setting multi-year lows this
week. But gains were limited by the ongoing harvest of massive
U.S. crops.
    At the Chicago Board of Trade, December wheat settled
up 3-3/4 cents at $4.82-3/4 per bushel after reaching $4.89-3/4,
a two-week high. Chart-based buying accelerated as the contract
broke through resistance near $4.85, but the market pared gains
late in the session.
    "The wheat market is finding a bit of support from overseas
wheat prices rallying several dollars a ton over the last few
days," said Mark Gold, managing partner at Top Third Ag
Marketing in Chicago. "That may be a result of Russia really
deciding to try to keep the wheat in country, to feed poultry
and livestock." 
    Traders say a run-up in Russian wheat prices, linked to a
rising domestic market, has curbed overseas sales despite a
near-record crop in one of the world's top exporters.
 
    CBOT wheat got a boost when the U.S. Department of
Agriculture reported export sales of U.S. wheat in the latest
week at 741,038 tonnes, a two-month high that topped trade
expectations. 
    As well, the U.S. dollar retreated from a four-year high
against a basket of currencies, buoying
dollar-denominated grains.
    CBOT November soybeans finished up 7-3/4 cents at
$9.24-1/2 per bushel and December corn ended up 1-1/2
cents at $3.22-3/4 a bushel.
    Soybeans drew support from tight supplies of soymeal,
despite a steep dive in cash values over the last week as the
harvest got under way.
    "The attitude is that crush is not ramping up fast enough,"
said Tom Fritz, a partner with EFG Group in Chicago.
    A slowdown in the U.S. harvest due to rains crossing the
Midwest this week supported soybeans and corn. Storms on
Wednesday dropped 2 to 4 inches (5 to 10 cm) of rain across
parts of Missouri and western Illinois, the Commodity Weather
Group said.
    Nonetheless, strong expectations for record-high corn and
soybean production kept prices anchored near multi-year lows.
Brokerage INTL FCStone on Wednesday raised its forecast for the
corn yield to 178.4 bushels per acre from 174.1 last month, and
raised its production estimate to 14.958 billion bushels.
    The firm raised its forecast of the U.S. soybean yield to
48.4 bushels per acre, from 47.6 last month, and raised its
production estimate to 4.066 billion bushels. 
    
 Prices at 3:09 p.m. CDT (2009 GMT)                  
 
                              LAST      NET    PCT   
                                        CHG    CHG   
 
 CBOT corn                  322.75     1.50   0.5%  
 CBOT soy                   924.50     7.75   0.9%  
 CBOT meal                  301.30     2.70   0.9%  
 CBOT soyoil                 32.80     0.00   0.0%  
 CBOT wheat                 482.75     3.75   0.8% 
    

 (Additional reporting by Gus Trompiz in Paris and Colin Packham
in Sydney; Editing by Hugh Lawson,; Peter Galloway and James
Dalgleish)
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