Fri Sep 7, 2012
* Soybeans set for first weekly decline in six weeks
* Wheat eases after rallying on expectations of Russian export curbs
* Argentina eyes record corn crop of 24.5 mln T
By Naveen Thukral
SINGAPORE, Sept 7 (Reuters) - Chicago soybeans fell for a third straight session on Friday with rains improving crop prospects in parts of the U.S. grain belt which has been scorched by the worst drought in 56 years.
Wheat edged lower after rallying in the previous session on expectations that Russia, the world's fourth largest exporter of the grain, could soon run out of supplies, prompting importers to turn to U.S. wheat.
Chicago Board of Trade new-crop soybeans have given up nearly 1 percent this week, snapping five consecutive weeks of drought-driven grains. December corn has also eased this week, falling for a second straight week.
Soybeans in drought-slammed Indiana, a top grain growing state in the U.S. Midwest, got a welcome boost from late-season August rains, with the heaviest amounts falling last week as the remnants of Hurricane Isaac moved through the region, a top state agronomist said.
The market is expecting the U.S. Department of Agriculture to raise soybean crop estimate in its supply-demand report due on Sept. 12 because of rains in recent weeks across northern and eastern Midwest.
"It will take some steam out of the market if USDA revises soybean yields higher," said Victor Thianpiriya, agricultural commodity strategist at ANZ in Singapore. "Forecasts of a weak El Nino could mean that production of palm oil out of Southeast Asia will be relatively good next year."
The U.S. government forecaster has issued its most definitive report since first raising the El Nino alert three months ago, forecasting a weak phenomenon that will last until the Northern Hemisphere spring.
On Friday, November soy fell 0.4 percent to $17.39-3/4 a bushel by 0256 GMT, while December wheat slipped 0.2 percent to $8.90 a bushel. December corn gave up 0.3 percent to $7.96-1/2 a bushel.
The wheat market took a breather after climbing 2.8 percent on Thursday amid expectations of export curbs in Russia which is running out of stocks.
The expectations stemmed from a large purchase of wheat from the Black Sea region, including Russia, by Egypt's main state-run wheat buyer, the General Authority for Supply Commodities.
While the purchase of 475,000 tonnes of wheat from Russia, Romania and Ukraine at an international tender highlighted how high prices had made U.S. supplies uncompetitive, it also raised the question if Egypt, the world's top importer, was trying to grab as much Russian wheat as possible before any move by Moscow
to limit sales.
Russia has repeatedly denied that it would ban exports due to a poor crop this year. It had curbed shipments in 2010 after a historic drought, sparking a major rally in prices.
Analysts said that Russia could run out of supplies for the export market if it maintains its current pace of sales -- it has sold to Egypt's GASC 840,000 tonnes of wheat in the agency's five back-to-back tenders that began Aug. 10.
For the corn market there was some bearish news from Argentina, the world's second largest exporter.
High global prices and recent rains are spurring farmers to plant corn in Argentina this season, a leading grains exchange said on Thursday as it raised its plantings forecast.
Argentina is set to produce a record corn harvest of 24.5 million tonnes during the 2012/13 season, President Cristina Fernandez said.
Prices at 0256 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 890.00 -1.75 -0.20% -2.52% 874.08 47
CBOT corn 796.50 -2.00 -0.25% -3.31% 768.46 43
CBOT soy 1739.75 -7.25 -0.41% +6.65% 1588.53 51
CBOT rice $14.71 $0.08 +0.55% -7.63% $15.46 14
WTI crude $94.86 -$0.67 -0.70% +1.61% $89.14 46
Currencies
Euro/dlr $1.263 $0.034 +2.74% +2.76%
USD/AUD 1.030 -0.026 -2.44% -2.61%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
* Soybeans set for first weekly decline in six weeks
* Wheat eases after rallying on expectations of Russian export curbs
* Argentina eyes record corn crop of 24.5 mln T
By Naveen Thukral
SINGAPORE, Sept 7 (Reuters) - Chicago soybeans fell for a third straight session on Friday with rains improving crop prospects in parts of the U.S. grain belt which has been scorched by the worst drought in 56 years.
Wheat edged lower after rallying in the previous session on expectations that Russia, the world's fourth largest exporter of the grain, could soon run out of supplies, prompting importers to turn to U.S. wheat.
Chicago Board of Trade new-crop soybeans have given up nearly 1 percent this week, snapping five consecutive weeks of drought-driven grains. December corn has also eased this week, falling for a second straight week.
Soybeans in drought-slammed Indiana, a top grain growing state in the U.S. Midwest, got a welcome boost from late-season August rains, with the heaviest amounts falling last week as the remnants of Hurricane Isaac moved through the region, a top state agronomist said.
The market is expecting the U.S. Department of Agriculture to raise soybean crop estimate in its supply-demand report due on Sept. 12 because of rains in recent weeks across northern and eastern Midwest.
"It will take some steam out of the market if USDA revises soybean yields higher," said Victor Thianpiriya, agricultural commodity strategist at ANZ in Singapore. "Forecasts of a weak El Nino could mean that production of palm oil out of Southeast Asia will be relatively good next year."
The U.S. government forecaster has issued its most definitive report since first raising the El Nino alert three months ago, forecasting a weak phenomenon that will last until the Northern Hemisphere spring.
On Friday, November soy fell 0.4 percent to $17.39-3/4 a bushel by 0256 GMT, while December wheat slipped 0.2 percent to $8.90 a bushel. December corn gave up 0.3 percent to $7.96-1/2 a bushel.
The wheat market took a breather after climbing 2.8 percent on Thursday amid expectations of export curbs in Russia which is running out of stocks.
The expectations stemmed from a large purchase of wheat from the Black Sea region, including Russia, by Egypt's main state-run wheat buyer, the General Authority for Supply Commodities.
While the purchase of 475,000 tonnes of wheat from Russia, Romania and Ukraine at an international tender highlighted how high prices had made U.S. supplies uncompetitive, it also raised the question if Egypt, the world's top importer, was trying to grab as much Russian wheat as possible before any move by Moscow
to limit sales.
Russia has repeatedly denied that it would ban exports due to a poor crop this year. It had curbed shipments in 2010 after a historic drought, sparking a major rally in prices.
Analysts said that Russia could run out of supplies for the export market if it maintains its current pace of sales -- it has sold to Egypt's GASC 840,000 tonnes of wheat in the agency's five back-to-back tenders that began Aug. 10.
For the corn market there was some bearish news from Argentina, the world's second largest exporter.
High global prices and recent rains are spurring farmers to plant corn in Argentina this season, a leading grains exchange said on Thursday as it raised its plantings forecast.
Argentina is set to produce a record corn harvest of 24.5 million tonnes during the 2012/13 season, President Cristina Fernandez said.
Prices at 0256 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 890.00 -1.75 -0.20% -2.52% 874.08 47
CBOT corn 796.50 -2.00 -0.25% -3.31% 768.46 43
CBOT soy 1739.75 -7.25 -0.41% +6.65% 1588.53 51
CBOT rice $14.71 $0.08 +0.55% -7.63% $15.46 14
WTI crude $94.86 -$0.67 -0.70% +1.61% $89.14 46
Currencies
Euro/dlr $1.263 $0.034 +2.74% +2.76%
USD/AUD 1.030 -0.026 -2.44% -2.61%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
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