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GRAINS-Wheat prices fall from 7-mth high, US forecasts curb losses

SYDNEY, Feb 13 (Reuters) - U.S. wheat edged down on Monday
to retreat from a seven-month high touched in the previous
session, but U.S. government forecasts of smaller-than-expected
global supply kept a floor under prices.

FUNDAMENTALS
* The most active wheat futures on the Chicago Board of
Trade dropped 0.4 percent to $4.47-1/4 a bushel. They
closed up 1.2 percent on Friday, after hitting their strongest
since July 13 at $4.50-3/4.
* The most active corn futures eased 0.2 percent to
$3.73-1/4 a bushel. They gained 1.4 percent in the previous
session, when they marked their highest since July 14 at
$3.75-1/2.
* The most active soybean futures fell 0.3 percent to
$10.55-3/4 a bushel. They closed up 0.8 percent on Friday, after
hitting their highest since Jan. 24 at $10.63-1/2.
* Wheat and corn draw support from a cut in the U.S.
Department of Agriculture's supply forecasts for the 2016/17
season.
* The government reduced its corn supply outlook due to
increased use in ethanol production and held its U.S. soybean
forecast steady.
* The USDA cut its estimate of world wheat ending stocks for
2016-17, largely due to reduced harvest estimates for India and
Kazakhstan, although global inventories would still be at a
record.

MARKET NEWS
* The dollar gained against the yen early on Monday, with
the market breathing a sigh of relief as the closely watched
two-day U.S.-Japan summit held over the weekend was seen to have
ended smoothly.
* Oil prices dipped on Monday on signs that global fuel
markets remained bloated despite OPEC-led crude production cuts
that have been more successful than most initially expected.

Grains prices at 0146 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 447.25 -1.75 -0.39% +0.85% 427.15 70
CBOT corn 373.75 -0.75 -0.20% +1.15% 363.67 67
CBOT soy 1055.75 -3.25 -0.31% +0.50% 1038.06 61
CBOT rice 9.54 -$0.03 -0.31% +0.63% $9.69 47
WTI crude 53.73 -$0.13 -0.24% +1.38% $52.84 58
Currencies
Euro/dlr $1.062 -$0.002 -0.14% -0.29%
USD/AUD 0.7664 0.000 -0.07% +0.55%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential

(Reporting by Colin Packham; Editing by Joseph Radford)

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