Thursday, 6 September 2012

GRAINS-Soybeans drop for 2nd day, wheat/corn flat

Thu Sep 6, 2012
SYDNEY, Sept 6 (Reuters) - U.S. soybeans fell more than 1 percent on Thursday, extending falls after posting their biggest daily loss in three weeks a day earlier, as traders locked in profits with the Midwest harvest kicking off and after recently hitting an all-time high.

FUNDAMENTALS

* Chicago Board Of Trade front-month soybeans fell 1.03 percent to $17.30 a bushel, having closed down 1.3 percent in the previous session as traders locked in profits after spot soybeans hit a record top of 17.94-3/4 per bushel on September 4.

* November soybeans fell 1.07 percent to $17.28-3/4 a bushel after falling 1.17 percent on Wednesday.

* New-crop corn was flat at $7.90-1/4 a bushel after sliding 1.77 percent in the previous session.

* December wheat was little changed at $8.68 a bushel, having closed down 2.36 percent on Wednesday.

* Basis bids to buy soybeans in the cash markets fell as much as 25 cents per bushel on Wednesday due to harvest pressure.

* Traders squaring positions ahead of the U.S. Department of Agriculture (USDA) September crop production and supply/demand reports next Wednesday.

* Remnants of Hurricane Isaac continue, with welcome rain across a broad swathe of the U.S. Midwest and portions of the Plains winter wheat region.

* Rains were expected to continue in the central Midwest, slowing corn and soybean harvest but adding valuable soil moisture ahead of winter wheat plantings, MDA EarthSat Weather said on Wednesday.

* Wheat exporters are focusing on the stiff competition for business from low-priced Russian wheat, which is still pouring into global export markets despite fears drought will cut the Russian crop by 30 percent this year. Russian wheat was offered at an unbeatable $40 a tonne cheaper than U.S. supplies in a
weekend purchase tender from Egypt, traders said.

MARKET NEWS

* The euro held firm in Asia on Thursday, having rallied sharply overnight on renewed hopes the European Central Bank will unveil a plan to help ease funding strains for stressed euro zone members.

* Brent crude prices fell on Wednesday, while U.S. crude inched up in seesaw trade ahead of a European Central Bank meeting and a U.S. August payrolls report as investors await central bank action in the face of slowing economic growth.

* U.S. stocks closed out a second straight session of thin trading on Wednesday, with investors reluctant to make big bets ahead of a crucial meeting of the European Central Bank, which could announce new policies to help contain the euro zone's debt crisis.

  Grains prices at  0118 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI
  CBOT wheat     869.25     1.50  +0.17%    -2.19%     897.52   36
  CBOT corn      791.00     0.25  +0.03%    -1.74%     805.76   41
  CBOT soy      1732.25   -15.25  -0.87%    -2.04%    1666.36   48
  CBOT rice      $14.93    $0.01  +0.07%    -1.61%     $15.75   21
  WTI crude      $95.84    $0.48  +0.50%    +0.57%     $93.65   54
  Currencies                                               
  Euro/dlr       $1.259   $0.000  -0.04%    +0.24%
  USD/AUD         1.018   -0.001  -0.08%    -0.36%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential

(Reporting by Colin Packham; Editing by Ed Davies)

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