Tue Oct 23, 2012
* Wheat down half a percent after 4 days of gains
* US corn harvest 87 pct complete, soybeans 80 pct
* Brazil's Safras raises soybean crop estimate
By Naveen Thukral
SINGAPORE, Oct 23 (Reuters) - Chicago wheat edged lower on Tuesday as the market took a breather after rising for four consecutive sessions on concerns over shrinking supplies in the Black Sea region and dryness hurting crops in top exporters the United States and Australia.
Soybeans eased as investors shifted their focus to Brazil and Argentina, where farmers are boosting plantings to produce record-large crops early next year.
"The world balance sheet for wheat is tightening with major exporters, but the United States is still missing out on export business," said Brett Cooper, a senior markets manager at FCStone Australia.
"Soybeans were up last night and the market is coming down slightly, I think it is a bit of profit-taking today."
Chicago Board of Trade November soy slid 0.5 percent to $15.36-1/2 a bushel by 0315 GMT. December corn lost 0.4 percent to $7.58-1/2 a bushel and December wheat fell half a percent to $8.73-1/2 a bushel.
The wheat market has been rallying since last week on speculation by traders that Ukraine, the world's ninth-largest exporter, would ban exports from Nov. 15 because dry weather reduced production by about a third this year.
There was also support from concerns that dry weather in U.S. Southern Plains wheat belt might hurt crop prospects. Australia, the world's second largest exporter, is not seeing much improvement in dry weather, which is curbing yields.
Ukraine's agriculture ministry said on Friday the current strong pace of wheat exports would exhaust the country's stocks available for shipping abroad by Nov. 15-20.
Traders had signed agreements to export 3.57 million tonnes of wheat as of Oct. 18, it said. The USDA has forecast Ukraine wheat exports this year at 4 million tonnes on a crop of 15.5 million tonnes.
Soybean futures, especially March and beyond contracts, are facing pressure, with expectations for a record-large soybean crop in Brazil, the world's No 2 exporter, which typically begins hitting export markets in March.
Brazilian analyst Safras e Mercado raised its estimate of the country's soybean production to a record 82.5 million tonnes from its July estimate of 82.3 million due to farmers expanding the area planted with the oilseed.
Soybean farmers in the U.S. were storing much of their crop, helping to strengthen prices in some Midwest cash markets.
Cash grain merchandisers said basis bids for soybeans in Indiana jumped 14 cents per bushel, while in Iowa they climbed 5 cents. The market was also supported by strong export demand, led by China, despite concerns over a slowdown in its growth.
Farmers had harvested 87 percent of their corn crop, the U.S. Department of Agriculture's weekly crop progress report on Monday showed. Analysts polled by Reuters had expected 89 percent. The soybean harvest was 80 percent complete, just below expectations for 82 percent.
The corn harvest in the top two producing states of Iowa and Illinois was 93 percent and 92 percent complete, respectively. Farmers in Iowa had harvested 96 percent of the soybean crop, while in Illinois 80 percent was harvested.
Prices at 0315 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 873.50 -4.75 -0.54% 873.53 54
CBOT corn 758.50 -2.75 -0.36% 767.19 53
CBOT soy 1536.50 -10.00 -0.65% 1581.76 46
CBOT rice $14.97 $0.07 +0.47% $15.47 47
WTI crude $88.93 $0.28 +0.32% $88.95 32
Currencies
Euro/dlr $1.305 $0.076 +6.21%
USD/AUD 1.032 -0.024 -2.26%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Clarence Fernandez)
* Wheat down half a percent after 4 days of gains
* US corn harvest 87 pct complete, soybeans 80 pct
* Brazil's Safras raises soybean crop estimate
By Naveen Thukral
SINGAPORE, Oct 23 (Reuters) - Chicago wheat edged lower on Tuesday as the market took a breather after rising for four consecutive sessions on concerns over shrinking supplies in the Black Sea region and dryness hurting crops in top exporters the United States and Australia.
Soybeans eased as investors shifted their focus to Brazil and Argentina, where farmers are boosting plantings to produce record-large crops early next year.
"The world balance sheet for wheat is tightening with major exporters, but the United States is still missing out on export business," said Brett Cooper, a senior markets manager at FCStone Australia.
"Soybeans were up last night and the market is coming down slightly, I think it is a bit of profit-taking today."
Chicago Board of Trade November soy slid 0.5 percent to $15.36-1/2 a bushel by 0315 GMT. December corn lost 0.4 percent to $7.58-1/2 a bushel and December wheat fell half a percent to $8.73-1/2 a bushel.
The wheat market has been rallying since last week on speculation by traders that Ukraine, the world's ninth-largest exporter, would ban exports from Nov. 15 because dry weather reduced production by about a third this year.
There was also support from concerns that dry weather in U.S. Southern Plains wheat belt might hurt crop prospects. Australia, the world's second largest exporter, is not seeing much improvement in dry weather, which is curbing yields.
Ukraine's agriculture ministry said on Friday the current strong pace of wheat exports would exhaust the country's stocks available for shipping abroad by Nov. 15-20.
Traders had signed agreements to export 3.57 million tonnes of wheat as of Oct. 18, it said. The USDA has forecast Ukraine wheat exports this year at 4 million tonnes on a crop of 15.5 million tonnes.
Soybean futures, especially March and beyond contracts, are facing pressure, with expectations for a record-large soybean crop in Brazil, the world's No 2 exporter, which typically begins hitting export markets in March.
Brazilian analyst Safras e Mercado raised its estimate of the country's soybean production to a record 82.5 million tonnes from its July estimate of 82.3 million due to farmers expanding the area planted with the oilseed.
Soybean farmers in the U.S. were storing much of their crop, helping to strengthen prices in some Midwest cash markets.
Cash grain merchandisers said basis bids for soybeans in Indiana jumped 14 cents per bushel, while in Iowa they climbed 5 cents. The market was also supported by strong export demand, led by China, despite concerns over a slowdown in its growth.
Farmers had harvested 87 percent of their corn crop, the U.S. Department of Agriculture's weekly crop progress report on Monday showed. Analysts polled by Reuters had expected 89 percent. The soybean harvest was 80 percent complete, just below expectations for 82 percent.
The corn harvest in the top two producing states of Iowa and Illinois was 93 percent and 92 percent complete, respectively. Farmers in Iowa had harvested 96 percent of the soybean crop, while in Illinois 80 percent was harvested.
Prices at 0315 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 873.50 -4.75 -0.54% 873.53 54
CBOT corn 758.50 -2.75 -0.36% 767.19 53
CBOT soy 1536.50 -10.00 -0.65% 1581.76 46
CBOT rice $14.97 $0.07 +0.47% $15.47 47
WTI crude $88.93 $0.28 +0.32% $88.95 32
Currencies
Euro/dlr $1.305 $0.076 +6.21%
USD/AUD 1.032 -0.024 -2.26%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Clarence Fernandez)
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