Fri Oct 26, 2012
* Soybeans down 0.2 pct on slowing U.S. exports
* Wheat up 0.3 pct, on track for 2nd week of gains
* Prospect of record South American crop weighs on soy
* Signs of waning U.S. poultry, cattle production
By Naveen Thukral
SINGAPORE, Oct 26 (Reuters) - Chicago soybeans lost more ground on Friday, while corn was little changed after sliding nearly 2 percent in the last session on pressure from lacklustre U.S. weekly exports and growing concerns over slowing demand.
Wheat futures edged higher, on track for a second week of gains, with adverse weather threatening supplies from top exporters.
"U.S. soybean exports were pretty low and you are looking at a big rebound in South American supplies," said Brett Cooper, a senior markets manager at FCStone Australia.
Chicago Board of Trade November soy had fallen 0.2 percent to $15.60-1/4 a bushel by 0319 GMT. December corn rose three quarters of a cent to $7.42-3/4 a bushel and December wheat added 0.3 percent to $8.75-3/4 a bushel.
The worst drought in half a century drove prices to historic highs this summer and there are signs demand is waning as end-users back away from the market due to poor profits.
The U.S. Department of Agriculture (USDA) in its weekly export sales report said corn sales were at 142,400 tonnes, below estimates for 150,000 to 250,000. Soybean sales were also lower than expected at 522,200, versus estimates of 650,000 to 850,000 tonnes.
Still, soybean prices continue to be underpinned by tight global supplies following the U.S. drought and are set to rise for a second week, on track to gain 1.7 percent in their biggest weekly gain in two months.
Corn has lost 2.5 percent in its largest weekly drop in a month, after two weeks of gains. Wheat is up around half a percent on the week, building on last week's 1.8 percent rise.
The market is expecting a bumper South American soybean crop with improving weather prospects for November seedings.
There was also bearish pressure stemming from lower meat production in the United States.
Last week, USDA released a cattle report that showed the number of young cattle placed in feedlots for future slaughter at a level below expectations, down almost 20 percent from a year ago and the smallest September placements since records began being kept in 1996.
The number of eggs placed in incubators for potential broiler production fell last week to the lowest since 2001, a bearish market factor for soymeal and soybean futures.
USDA's broiler hatchery report released on Wednesday showed 177 million eggs in incubators during the week ended Oct. 20, down 4 percent from the corresponding week a year earlier.
PARCHED SOILS
The wheat market is being supported by prospects of lower global supplies as dry weather hurts production in Australia and the U.S. Plains suffer from lack of moisture for the winter wheat planting.
Many areas of the drought-stricken U.S. continued to see improvement over the last week as steady rains started recharging parched soils, but for key agricultural areas of the U.S. Heartland, there was little relief, according to a climatology report issued Thursday.
Winter wheat farmers who have planted or are wrapping up planting their new crop will need significant rainfall and/or snow to provide enough moisture to grow a healthy crop.
The International Grains Council on Thursday cut its forecast for global maize and wheat crops in 2012/13, further tightening supplies with grain stocks at the end of the season seen sinking to a five-year low.
The IGC reduced its forecast for total grain stocks at the end of the 2012/13 season by 4 million tonnes to 328 million, now representing a fall of 44 million, or 12 percent, from year-earlier levels.
Prices at 0319 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 875.75 3.00 +0.34% 873.60 55
CBOT corn 742.75 0.75 +0.10% 766.67 42
CBOT soy 1560.25 -3.75 -0.24% 1582.55 55
CBOT rice $14.90 -$0.02 -0.10% $15.46 43
WTI crude $85.84 -$0.21 -0.24% $88.84 23
Currencies
Euro/dlr $1.295 $0.066 +5.34%
USD/AUD 1.034 -0.022 -2.04%
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)
* Soybeans down 0.2 pct on slowing U.S. exports
* Wheat up 0.3 pct, on track for 2nd week of gains
* Prospect of record South American crop weighs on soy
* Signs of waning U.S. poultry, cattle production
By Naveen Thukral
SINGAPORE, Oct 26 (Reuters) - Chicago soybeans lost more ground on Friday, while corn was little changed after sliding nearly 2 percent in the last session on pressure from lacklustre U.S. weekly exports and growing concerns over slowing demand.
Wheat futures edged higher, on track for a second week of gains, with adverse weather threatening supplies from top exporters.
"U.S. soybean exports were pretty low and you are looking at a big rebound in South American supplies," said Brett Cooper, a senior markets manager at FCStone Australia.
Chicago Board of Trade November soy had fallen 0.2 percent to $15.60-1/4 a bushel by 0319 GMT. December corn rose three quarters of a cent to $7.42-3/4 a bushel and December wheat added 0.3 percent to $8.75-3/4 a bushel.
The worst drought in half a century drove prices to historic highs this summer and there are signs demand is waning as end-users back away from the market due to poor profits.
The U.S. Department of Agriculture (USDA) in its weekly export sales report said corn sales were at 142,400 tonnes, below estimates for 150,000 to 250,000. Soybean sales were also lower than expected at 522,200, versus estimates of 650,000 to 850,000 tonnes.
Still, soybean prices continue to be underpinned by tight global supplies following the U.S. drought and are set to rise for a second week, on track to gain 1.7 percent in their biggest weekly gain in two months.
Corn has lost 2.5 percent in its largest weekly drop in a month, after two weeks of gains. Wheat is up around half a percent on the week, building on last week's 1.8 percent rise.
The market is expecting a bumper South American soybean crop with improving weather prospects for November seedings.
There was also bearish pressure stemming from lower meat production in the United States.
Last week, USDA released a cattle report that showed the number of young cattle placed in feedlots for future slaughter at a level below expectations, down almost 20 percent from a year ago and the smallest September placements since records began being kept in 1996.
The number of eggs placed in incubators for potential broiler production fell last week to the lowest since 2001, a bearish market factor for soymeal and soybean futures.
USDA's broiler hatchery report released on Wednesday showed 177 million eggs in incubators during the week ended Oct. 20, down 4 percent from the corresponding week a year earlier.
PARCHED SOILS
The wheat market is being supported by prospects of lower global supplies as dry weather hurts production in Australia and the U.S. Plains suffer from lack of moisture for the winter wheat planting.
Many areas of the drought-stricken U.S. continued to see improvement over the last week as steady rains started recharging parched soils, but for key agricultural areas of the U.S. Heartland, there was little relief, according to a climatology report issued Thursday.
Winter wheat farmers who have planted or are wrapping up planting their new crop will need significant rainfall and/or snow to provide enough moisture to grow a healthy crop.
The International Grains Council on Thursday cut its forecast for global maize and wheat crops in 2012/13, further tightening supplies with grain stocks at the end of the season seen sinking to a five-year low.
The IGC reduced its forecast for total grain stocks at the end of the 2012/13 season by 4 million tonnes to 328 million, now representing a fall of 44 million, or 12 percent, from year-earlier levels.
Prices at 0319 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 875.75 3.00 +0.34% 873.60 55
CBOT corn 742.75 0.75 +0.10% 766.67 42
CBOT soy 1560.25 -3.75 -0.24% 1582.55 55
CBOT rice $14.90 -$0.02 -0.10% $15.46 43
WTI crude $85.84 -$0.21 -0.24% $88.84 23
Currencies
Euro/dlr $1.295 $0.066 +5.34%
USD/AUD 1.034 -0.022 -2.04%
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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