Wed Aug 29, 2012
By Colin Packham
SYDNEY, Aug 29 (Reuters) - U.S. soybeans fell on Wednesday as traders locked in profits, wiping out gains from the previous session when strong export demand supported prices.
New-crop soybeans are down almost 2.5 percent from a contract high touched on Monday when a key farm newsletter heightened fears about U.S. drought damage.
Traders were also keeping a close watch on Hurricane Isaac, which made landfall in southern Louisiana on Tuesday, as it could add moisture to drought-stricken cropland.
FUNDAMENTALS
* Chicago Board Of Trade November soybeans fell 0.2 percent to $17.18-3/4 a bushel on Wednesday, having firmed 0.2 percent the day before.
* New-crop wheat was little changed at $8.76 a bushel after closing down 0.65 percent in the previous session.
* December corn was flat at $7.95-1/4 a bushel after falling 0.66 percent on Tuesday.
* Investors are wary of taking new positions as they remember how grain markets experienced a two-month long breakdown in 2011 after peaking in late August, traders said. A year ago, soybean futures fell 16.7 percent and corn prices dropped 14.6 percent even as harvests fell below expectations.
* Expected torrential rainfall and localized flooding around Hurricane Isaac would add valuable soil moisture to a large chunk of drought-stricken cropland, but the initial impact will likely stall the early harvest of corn and soybeans and could lead to crop diseases, MDA EarthSat Weather said.
* Farmers have slowed harvesting to allow crops to dry after recent rains, though it remains on a record pace, the latest U.S. Department of Agriculture harvest progress report showed.
* Isaac has already disrupted shipping, with grain companies Cargill Inc and Archer Daniels Midland Co shutting down some export elevators in Louisiana as a precaution.
* Barge traffic along the Mississippi River between Baton Rouge, Louisiana, and the U.S. Gulf has also been suspended. The river is a major channel for the movement of grains produced in the Midwest farm belt to export terminals at the Gulf of Mexico for shipment around the world.
* Private exporters reported the sale of 110,000 tonnes of U.S. soybeans to China for delivery in the new marketing year, the USDA said on Tuesday.
MARKET NEWS
* The euro held firm in Asia on Wednesday, having been swept higher by a wave of short covering, while the Australian dollar languished at one-month lows on persistent worries about Chinese growth.
* Oil prices rose on Tuesday as Isaac approached the U.S. Gulf Coast, forcing companies in the region to close down oil production platforms and refineries.
* U.S. stocks ended little changed in another day of scarce activity on Tuesday after mixed economic data gave investors little reason to shift their focus from Federal Reserve Chairman Ben Bernanke's speech on Friday.
Grains prices at 0035 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 876.00 0.50 +0.06% -4.05% 873.61 35
CBOT corn 795.25 -0.25 -0.03% -3.46% 768.42 38
CBOT soy 1718.75 -3.50 -0.20% +5.36% 1587.83 54
CBOT rice $15.68 $0.00 +0.03% -1.51% $15.49 43
WTI crude $95.97 -$0.36 -0.37% +0.52% $92.74 57
Currencies
Euro/dlr $1.256 -$0.001 -0.05% +0.47%
USD/AUD 1.037 0.000 -0.05% -0.02%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Joseph Radford)
By Colin Packham
SYDNEY, Aug 29 (Reuters) - U.S. soybeans fell on Wednesday as traders locked in profits, wiping out gains from the previous session when strong export demand supported prices.
New-crop soybeans are down almost 2.5 percent from a contract high touched on Monday when a key farm newsletter heightened fears about U.S. drought damage.
Traders were also keeping a close watch on Hurricane Isaac, which made landfall in southern Louisiana on Tuesday, as it could add moisture to drought-stricken cropland.
FUNDAMENTALS
* Chicago Board Of Trade November soybeans fell 0.2 percent to $17.18-3/4 a bushel on Wednesday, having firmed 0.2 percent the day before.
* New-crop wheat was little changed at $8.76 a bushel after closing down 0.65 percent in the previous session.
* December corn was flat at $7.95-1/4 a bushel after falling 0.66 percent on Tuesday.
* Investors are wary of taking new positions as they remember how grain markets experienced a two-month long breakdown in 2011 after peaking in late August, traders said. A year ago, soybean futures fell 16.7 percent and corn prices dropped 14.6 percent even as harvests fell below expectations.
* Expected torrential rainfall and localized flooding around Hurricane Isaac would add valuable soil moisture to a large chunk of drought-stricken cropland, but the initial impact will likely stall the early harvest of corn and soybeans and could lead to crop diseases, MDA EarthSat Weather said.
* Farmers have slowed harvesting to allow crops to dry after recent rains, though it remains on a record pace, the latest U.S. Department of Agriculture harvest progress report showed.
* Isaac has already disrupted shipping, with grain companies Cargill Inc and Archer Daniels Midland Co shutting down some export elevators in Louisiana as a precaution.
* Barge traffic along the Mississippi River between Baton Rouge, Louisiana, and the U.S. Gulf has also been suspended. The river is a major channel for the movement of grains produced in the Midwest farm belt to export terminals at the Gulf of Mexico for shipment around the world.
* Private exporters reported the sale of 110,000 tonnes of U.S. soybeans to China for delivery in the new marketing year, the USDA said on Tuesday.
MARKET NEWS
* The euro held firm in Asia on Wednesday, having been swept higher by a wave of short covering, while the Australian dollar languished at one-month lows on persistent worries about Chinese growth.
* Oil prices rose on Tuesday as Isaac approached the U.S. Gulf Coast, forcing companies in the region to close down oil production platforms and refineries.
* U.S. stocks ended little changed in another day of scarce activity on Tuesday after mixed economic data gave investors little reason to shift their focus from Federal Reserve Chairman Ben Bernanke's speech on Friday.
Grains prices at 0035 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 876.00 0.50 +0.06% -4.05% 873.61 35
CBOT corn 795.25 -0.25 -0.03% -3.46% 768.42 38
CBOT soy 1718.75 -3.50 -0.20% +5.36% 1587.83 54
CBOT rice $15.68 $0.00 +0.03% -1.51% $15.49 43
WTI crude $95.97 -$0.36 -0.37% +0.52% $92.74 57
Currencies
Euro/dlr $1.256 -$0.001 -0.05% +0.47%
USD/AUD 1.037 0.000 -0.05% -0.02%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Joseph Radford)
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