Fri Jun 15, 2012
* Soy up nearly 1 pct, corn dips half pct, wheat extends gains
* China winter wheat output revised down on disease
* Strong exports support soybeans, weigh on spot-corn
* Dry conditions in U.S. Midwest threaten corn prospects
By Naveen Thukral
SINGAPORE, June 15 (Reuters) - Chicago wheat on Friday extended gains from the previous session, after China's official think-tank revised down the nation's winter crop estimates, raising the prospect of higher imports by the world's biggest producer and consumer of the grain.
Soybeans rose almost 1 percent, snapping a two-session losing streak amid broad strength in financial markets following plans by central banks to stabilise markets if a weekend election in Greece unleashes turmoil.
"Wheat sales to China out of the U.S. are an encouraging sign for the market and show that U.S. wheat is good value," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia, referring to numbers in a weekly report from the U.S. Department of Agriculture.
"On top of that, the overall export sales report was encouraging for wheat as well as soybeans, but a bit disappointing for the corn market."
Chicago Board of Trade July wheat had gained 0.2 percent to $6.24-1/2 a bushel by 0315 GMT, while July soybeans had added 0.9 percent to $13.98-1/4 a bushel.
July corn fell half a percent to $5.98-3/4 a bushel, with the new-crop December contract down 0.3 percent at $5.14-1/2 a bushel.
China's official grain think-tank revised down the country's 2012 winter wheat output to 111.7 million tonnes from the 114 million tonnes previously forecast after widespread damage from disease.
The winter wheat now being harvested accounts for about 95 percent of the country's total wheat output, which the China National Grain and Oils Information Center (CNGOIC) also revised down to 118 million tonnes this year from an estimate of 120.3 million tonnes last month.
China - which last week bought 110,000 tonnes of U.S. soft red winter wheat, its largest single purchase of that class of wheat in 8-1/2 years - could be in the market for more cargoes.
The country has been increasing its purchases for feed from Australia in recent months, as well as milling wheat cargoes. But Asian buyers are now turning to the United States which is making competitive offers.
While weekly corn sales slumped, wheat and soybean sales rebounded from two disappointing weeks, the USDA's report showed.
Net soybean export sales last week jumped to a five-week peak of 1.005 million tonnes, more than the previous two weeks combined, fueled by the largest weekly purchase in five weeks by China, the world's top importer of the oilseed.
HOT AND DRY
U.S. wheat sales last week rebounded from a five-month low, more than doubling to 432,900 tonnes, the most in three weeks.
Meanwhile, the soybean harvest in Argentina is being slowed by heavy rains in areas parched by drought earlier in the season, a leading grains exchange said.
Even as spot U.S. corn futures eased, the new-crop December contract is likely to be supported by forecasts of hot and dry weather in the U.S. Midwest.
Temperatures could rise into the upper 80s F to mid-90s F early next week in the Corn Belt but will be cooler for the rest of the week.
Analysts already have started to trim U.S. corn yield outlooks due to dry weather in May and early June. A Reuters poll of 15 analysts on Wednesday showed the expected yield per acre down 3 percent from USDA's initial forecast for 166 bushels per acre.
Asian shares edged up on Friday, and the euro held most of the previous session's gains, as nervous investors took comfort from the plans for coordinated action by major central banks.
Prices at 0315 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 624.50 1.00 +0.16% +1.38% 638.68 46
CBOT corn 598.75 -2.75 -0.46% +1.05% 591.25 56
CBOT soy 1398.25 12.25 +0.88% -0.71% 1396.26 49
CBOT rice $14.01 $0.04 +0.29% +0.83% $14.62 43
WTI crude $84.59 $0.68 +0.81% +2.38% $89.75 42
Currencies
Euro/dlr $1.263 $0.015 +1.21% -0.23%
USD/AUD 1.002 0.015 +1.55% +0.18%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral)
No comments:
Post a Comment