Fri Aug 31, 2012
* Soybeans slide after hitting contract peak
* Wheat steady ahead of Russian meeting
* Corn falls amid reports Isaac may cause less damage than expected
By Colin Packham
SYDNEY, Aug 31 (Reuters) - U.S. soybeans on Friday gave back all their gains from the previous session, when they touched a contract high, as traders took profits, with markets looking to a gathering of central bankers later in the day for clues on possible imminent monetary stimulus.
Wheat was flat -- though it remains on course for its first weekly gain since the end of July -- ahead of a critical meeting of Russian ministers that is expected to herald curbs to grain exports. Corn fell as traders speculated damage from Hurricane Isaac would be less severe than feared, with new-crop corn on course to record its biggest weekly fall in 11 weeks.
"Soybeans hit a record high on Thursday after impressive export numbers, but the market has fallen back today due to some profit-taking," said Ker Chung Yang, commodities analyst at Phillip Futures Singapore.
Front-month Chicago Board of Trade soybeans dropped 0.8 percent to $17.56 a bushel, having touched a contract peak on Thursday of $17.80-3/4 before slipping back slightly to finish up 0.4 percent.
CBOT November soybeans fell 0.99 percent to $17.46 a bushel after rising 0.6 percent in the previous session. But new-crop soybeans remain on course to finish up 0.84 percent on the week and 6.64 percent higher on the month, their third consecutive monthly gain.
December wheat was little changed at $9.02-1/2 a bushel after declining 0.3 percent the session before. New-crop wheat is up 1.63 percent for the week, its first weekly gain since the last week of July.
"There is ... some talk that the damage to grains from Isaac wont be as bad as predicted, while there will be some positioning ahead of the speech by Ben Bernanke," Ker Chung Yang said, referring to a speech to be delivered by the Federal Reserve Chairman in Jackson Hole, Wyoming.
New-crop corn dropped 0.43 percent to $8.05 a bushel, having closed 0.62 percent lower on Thursday. Corn is down 0.4 percent on the week, its biggest weekly fall since the week ending June 17 after prices had soared due to the worst drought across the U.S. Midwest in 56 years.
STRONG SOYBEAN DEMAND
Exporters have not begun to ration their demand for soybeans despite high prices and expectations for a small U.S. harvest, data showed.
The U.S. Agriculture Department said weekly export sales of soybeans totaled 721,400 tonnes, near the high end of forecasts for 600,000 to 800,000 tonnes.
Wheat exports also came in line with expectations, but export sales of corn dropped below market forecasts.
Wheat traders readied for news on whether Russia will curb grain exports, with drought cutting harvest expectations below 2010 levels. A punitive tax on exports is a likely option as soon as October, according to a survey of international grain traders conducted by Reuters.
SovEcon agricultural analysts have reduced their forecast for Russia's 2012 wheat crop to 38 million tonnes, below levels produced in 2010 when Russia banned exports for nearly a year.
Torrential rain and wind from Isaac likely harmed some rice, cotton, soybean and sugarcane crops in the Deep South, but the rains will also bring relief to farmers struggling with the worst drought in more than 50 years, analysts said.
Grains prices at 0325 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 902.50 -0.50 -0.06% -0.36% 902.25 57
CBOT corn 805.00 -3.50 -0.43% -1.04% 804.77 55
CBOT soy 1746.00 -17.50 -0.99% -0.40% 1651.32 63
CBOT rice $15.37 $0.06 +0.39% -0.97% $15.82 33
WTI crude $94.66 $0.04 +0.04% -0.87% $92.90 47
Currencies
Euro/dlr $1.252 $0.001 +0.10% -0.10%
USD/AUD 1.029 0.001 +0.09% -0.51%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Joseph Radford)
* Soybeans slide after hitting contract peak
* Wheat steady ahead of Russian meeting
* Corn falls amid reports Isaac may cause less damage than expected
By Colin Packham
SYDNEY, Aug 31 (Reuters) - U.S. soybeans on Friday gave back all their gains from the previous session, when they touched a contract high, as traders took profits, with markets looking to a gathering of central bankers later in the day for clues on possible imminent monetary stimulus.
Wheat was flat -- though it remains on course for its first weekly gain since the end of July -- ahead of a critical meeting of Russian ministers that is expected to herald curbs to grain exports. Corn fell as traders speculated damage from Hurricane Isaac would be less severe than feared, with new-crop corn on course to record its biggest weekly fall in 11 weeks.
"Soybeans hit a record high on Thursday after impressive export numbers, but the market has fallen back today due to some profit-taking," said Ker Chung Yang, commodities analyst at Phillip Futures Singapore.
Front-month Chicago Board of Trade soybeans dropped 0.8 percent to $17.56 a bushel, having touched a contract peak on Thursday of $17.80-3/4 before slipping back slightly to finish up 0.4 percent.
CBOT November soybeans fell 0.99 percent to $17.46 a bushel after rising 0.6 percent in the previous session. But new-crop soybeans remain on course to finish up 0.84 percent on the week and 6.64 percent higher on the month, their third consecutive monthly gain.
December wheat was little changed at $9.02-1/2 a bushel after declining 0.3 percent the session before. New-crop wheat is up 1.63 percent for the week, its first weekly gain since the last week of July.
"There is ... some talk that the damage to grains from Isaac wont be as bad as predicted, while there will be some positioning ahead of the speech by Ben Bernanke," Ker Chung Yang said, referring to a speech to be delivered by the Federal Reserve Chairman in Jackson Hole, Wyoming.
New-crop corn dropped 0.43 percent to $8.05 a bushel, having closed 0.62 percent lower on Thursday. Corn is down 0.4 percent on the week, its biggest weekly fall since the week ending June 17 after prices had soared due to the worst drought across the U.S. Midwest in 56 years.
STRONG SOYBEAN DEMAND
Exporters have not begun to ration their demand for soybeans despite high prices and expectations for a small U.S. harvest, data showed.
The U.S. Agriculture Department said weekly export sales of soybeans totaled 721,400 tonnes, near the high end of forecasts for 600,000 to 800,000 tonnes.
Wheat exports also came in line with expectations, but export sales of corn dropped below market forecasts.
Wheat traders readied for news on whether Russia will curb grain exports, with drought cutting harvest expectations below 2010 levels. A punitive tax on exports is a likely option as soon as October, according to a survey of international grain traders conducted by Reuters.
SovEcon agricultural analysts have reduced their forecast for Russia's 2012 wheat crop to 38 million tonnes, below levels produced in 2010 when Russia banned exports for nearly a year.
Torrential rain and wind from Isaac likely harmed some rice, cotton, soybean and sugarcane crops in the Deep South, but the rains will also bring relief to farmers struggling with the worst drought in more than 50 years, analysts said.
Grains prices at 0325 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 902.50 -0.50 -0.06% -0.36% 902.25 57
CBOT corn 805.00 -3.50 -0.43% -1.04% 804.77 55
CBOT soy 1746.00 -17.50 -0.99% -0.40% 1651.32 63
CBOT rice $15.37 $0.06 +0.39% -0.97% $15.82 33
WTI crude $94.66 $0.04 +0.04% -0.87% $92.90 47
Currencies
Euro/dlr $1.252 $0.001 +0.10% -0.10%
USD/AUD 1.029 0.001 +0.09% -0.51%
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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