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GRAINS-Wheat ticks up, but set for 2nd week of losses on ample supplies

* U.S. wheat faces competition from Black Sea region
* Soybeans rise for 3rd day as rains delay U.S. harvest

(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Oct 6 (Reuters) - Chicago wheat futures edged
higher on Friday but the market is on track for its second week
of decline with pressure from abundant global supplies.
Soybeans rose for a third consecutive session on reports of
lower-than-expected yields in the U.S. Midwest, where rains have
already slowed the pace of harvest.
The Chicago Board of Trade most-active wheat contract
is down 1.2 percent this week, soybeans are set to finish
the week little changed and corn has dropped 1.3 percent,
its biggest seven-day loss in six weeks.
Wheat prices have been pressured by export competition from
a record Russian harvest this year. U.S. offerings are still
seen as too expensive for overseas buyers despite the recent
weakness in futures.
"There no issue with wheat supplies as the Russian crop is
at a record high," said one India-based agricultural commodities
analyst.
"From here the downside is also limited as U.S. farmers are
expected to further reduce planted area but at the same time
there is no catalyst to boost prices."
By 0315 GMT on Friday, wheat rose 0.5 percent to $4.42-3/4 a
bushel, soybeans were trading 0.2 percent higher at $9.69-3/4 a
bushel and corn added 0.3 percent to $3.50-1/2 a bushel.
In bearish news, the European Commission increased its
monthly estimate of 2017/18 usable soft wheat production in the
European Union by 1 million tonnes to 140.4 million tonnes.
That compared with 133.7 million tonnes produced in 2016/17,
the Commission said in a crop report released on Thursday.
Still, half of Argentina's 5.4 million hectares (13 million
acres) planted with wheat for the 2017/18 season are affected by
excessively moist conditions, the Buenos Aires grains exchange
said on Thursday.
Heavy rains in producing regions last weekend added to
abundant rains in recent months that have already reduced wheat
planted area by 150,000 hectares, the exchange said.
Soybean prices have been supported by disappointing yields
in key Midwest producing areas, where wet weather has slowed
harvesting.
The U.S. Department of Agriculture said weekly export sales
of corn totalled 814,100 tonnes, topping market forecasts that
ranged from 500,000 to 700,000 tonnes. Export sales of soybeans
and wheat were in line with trade estimates.

Commodity funds were net buyers of CBOT corn, soybean and
soymeal futures contracts on Thursday and net sellers of soyoil
and wheat, traders said.

Grains prices at 0315 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 442.75 2.00 +0.45% +0.17% 443.36 47
CBOT corn 350.50 1.00 +0.29% +0.65% 352.78 50
CBOT soy 969.75 1.50 +0.15% +1.20% 961.07 58
CBOT rice 11.90 -$0.02 -0.13% -1.08% $12.49 27
WTI crude 50.70 -$0.09 -0.18% +1.44% $49.47 53
Currencies
Euro/dlr $1.170 -$0.001 -0.07% -0.48%
USD/AUD 0.7756 -0.004 -0.49% -1.36%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
hundredweight
RSI 14, exponential

(Reporting by Naveen Thukral; Editing by Tom Hogue)

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