Wed Sep 5, 2012
* Rains to boost U.S. winter wheat planting
* Wheat futures pressured by Black Sea exports
* Soybeans steady after climbing to record top
* Corn, soy prices underpinned by tight supplies
By Naveen Thukral
SINGAPORE, Sept 5 (Reuters) - Chicago wheat eased on Wednesday, falling for a fourth consecutive session as rains across the U.S. Plains improved the prospects for winter crop planting and as exports from the Black Sea region continued to pressure the market.
Soybeans were little changed after climbing to a record top of around $18 a bushel on Tuesday, while corn edged higher as tightening global supplies underpinned the market.
"It has taken a few large tenders for the market to realise that U.S. wheat is too expensive," said one Melbourne-based analyst. "The weather in the U.S. wheat belt is looking better for the winter crop seeding."
The most-active December wheat on the Chicago Board of Trade had fallen 0.3 percent to $8.86-1/2 a bushel by 0255 GMT. New-crop November soy was unchanged at $17.68-1/4 a bushel, while December corn added 3/4 of a cent to $8.05-3/4 a bushel.
Remnants from Hurricane Isaac left welcome rainfall across a broad swathe of the central U.S. Midwest, providing soil moisture ahead of autumn seeding of the 2013 crop. More rain was forecast for the weekend in the Midwest and much of the United States.
Black Sea wheat has been sought after over the past few weeks, boosting expectations that Russia will curb exports amid dwindling domestic supplies, although the government denied on Friday it was planning to limit sales.
Egypt, the world's biggest importer, bought 355,000 tonnes of Russian, Ukrainian and Romanian wheat over the weekend.
Russian grain quality has fallen sharply, with yields from the key global wheat supplier's current harvest down 27 percent from last year to 1.89 tonnes per hectare as of September 3.
Russia had completed 65 percent of its harvest campaign as of Monday, reaping 55 million tonnes of grain, including 33 million tonnes of wheat and 12 million tonnes of barley.
The U.S. Department of Agriculture attache in Moscow lowered its forecast for Russia's grain crop to 73 million tonnes, compared with 94 million tonnes for 2011 and 61 million tonnes in drought-impacted 2010.
In the corn market, investors are paying attention to the U.S. harvest which is still running at a record pace despite rains related to Hurricane Isaac keeping many farmers out of their fields last week.
The USDA said on Tuesday that 10 percent of the corn crop had been harvested as of September 2, up from 6 percent a week earlier. That compares with 3 percent a year ago and the five-year average of 3 percent.
Focus is also turning to South America where farmers have started planting corn.
Plentiful rains have ensured a good start to the 2012/13 corn growing season in Argentina, one of the world's biggest grains suppliers.
Farmers have begun seeding new corn, betting on improved weather conditions after August's heavy rains and as forecasts show the El Nino phenomenon will keep soils moist throughout this year.
Prices at 0255 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 886.50 -2.25 -0.25% 873.96 45
CBOT corn 805.75 0.75 +0.09% 768.77 53
CBOT soy 1768.25 0.00 +0.00% 1589.48 68
CBOT rice $15.22 $0.04 +0.30% $15.48 29
WTI crude $95.48 $0.18 +0.19% $89.16 52
Currencies
Euro/dlr $1.254 $0.025 +2.02%
USD/AUD 1.021 -0.034 -3.25%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Joseph Radford)
* Rains to boost U.S. winter wheat planting
* Wheat futures pressured by Black Sea exports
* Soybeans steady after climbing to record top
* Corn, soy prices underpinned by tight supplies
By Naveen Thukral
SINGAPORE, Sept 5 (Reuters) - Chicago wheat eased on Wednesday, falling for a fourth consecutive session as rains across the U.S. Plains improved the prospects for winter crop planting and as exports from the Black Sea region continued to pressure the market.
Soybeans were little changed after climbing to a record top of around $18 a bushel on Tuesday, while corn edged higher as tightening global supplies underpinned the market.
"It has taken a few large tenders for the market to realise that U.S. wheat is too expensive," said one Melbourne-based analyst. "The weather in the U.S. wheat belt is looking better for the winter crop seeding."
The most-active December wheat on the Chicago Board of Trade had fallen 0.3 percent to $8.86-1/2 a bushel by 0255 GMT. New-crop November soy was unchanged at $17.68-1/4 a bushel, while December corn added 3/4 of a cent to $8.05-3/4 a bushel.
Remnants from Hurricane Isaac left welcome rainfall across a broad swathe of the central U.S. Midwest, providing soil moisture ahead of autumn seeding of the 2013 crop. More rain was forecast for the weekend in the Midwest and much of the United States.
Black Sea wheat has been sought after over the past few weeks, boosting expectations that Russia will curb exports amid dwindling domestic supplies, although the government denied on Friday it was planning to limit sales.
Egypt, the world's biggest importer, bought 355,000 tonnes of Russian, Ukrainian and Romanian wheat over the weekend.
Russian grain quality has fallen sharply, with yields from the key global wheat supplier's current harvest down 27 percent from last year to 1.89 tonnes per hectare as of September 3.
Russia had completed 65 percent of its harvest campaign as of Monday, reaping 55 million tonnes of grain, including 33 million tonnes of wheat and 12 million tonnes of barley.
The U.S. Department of Agriculture attache in Moscow lowered its forecast for Russia's grain crop to 73 million tonnes, compared with 94 million tonnes for 2011 and 61 million tonnes in drought-impacted 2010.
In the corn market, investors are paying attention to the U.S. harvest which is still running at a record pace despite rains related to Hurricane Isaac keeping many farmers out of their fields last week.
The USDA said on Tuesday that 10 percent of the corn crop had been harvested as of September 2, up from 6 percent a week earlier. That compares with 3 percent a year ago and the five-year average of 3 percent.
Focus is also turning to South America where farmers have started planting corn.
Plentiful rains have ensured a good start to the 2012/13 corn growing season in Argentina, one of the world's biggest grains suppliers.
Farmers have begun seeding new corn, betting on improved weather conditions after August's heavy rains and as forecasts show the El Nino phenomenon will keep soils moist throughout this year.
Prices at 0255 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 886.50 -2.25 -0.25% 873.96 45
CBOT corn 805.75 0.75 +0.09% 768.77 53
CBOT soy 1768.25 0.00 +0.00% 1589.48 68
CBOT rice $15.22 $0.04 +0.30% $15.48 29
WTI crude $95.48 $0.18 +0.19% $89.16 52
Currencies
Euro/dlr $1.254 $0.025 +2.02%
USD/AUD 1.021 -0.034 -3.25%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Joseph Radford)
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