Wed Nov 7, 2012
* US wheat dips 0.5 pct after two days of gains
* Soybeans little changed, corn slips 0.3 pct
* Market eyes US election results, USDA report
* Supply concerns to support wheat, corn prices
By Naveen Thukral
SINGAPORE, Nov 7 (Reuters) - U.S. wheat futures slid on
Wednesday, giving up some of the last two sessions' gains accumulated on
concerns that adverse weather could curb supplies in top exporters the
United States and Australia.
Soybeans were little changed after gaining 0.8 percent on Tuesday amid
lacklustre trading in agricultural markets as investors awaited the
result of the U.S. presidential election.
"It is bit of cautious trade before the results," said Ker Chung Yang, a
senior investment analyst at Phillip Futures in Singapore. "From the
fundamental point of view, soybeans should come under pressure as South
American weather is looking good for the crop."
Chicago Board of Trade December wheat fell 0.5 percent to $8.72-3/4 a
bushel by 0307 GMT. November soy rose 0.1 percent to $15.18-1/4 a bushel
and December corn lost 0.3 percent to $7.39 a bushel.
Asian shares were capped while the safe-haven yen gained on Wednesday as
investors remained guarded against the risk of an indecisive outcome in
the close-fought U.S. election, with early counting showing no clear
winner.
Soybeans have tumbled more than 15 percent from the record top of
$17.94-3/4 a bushel hit on September 4, but the market is finding
support near $15 a bushel.
The soybean market has been under pressure on expectations of higher
output in the United States and a favourable crop outlook in South
America.
Reports of improved U.S. soybean yields in later-harvested fields should
prompt the U.S. Department of Agriculture on Friday to raise its
estimate of the drought-hit 2012 crop, analysts said. The global demand
and supply forecasts will be released at 1330 GMT on Friday.
The weather in South America has been encouraging higher planting of
soybeans this year but there were concerns over excessive rain in parts
of Argentina.
Argentina's 2013 soybean crop may be 3 million to 6 million tonnes below
earlier forecasts of 55 million to 56 million tonnes as repeated rain
is disrupting sowing, Hamburg-based oilseeds analysts Oil World said on
Tuesday.
U.S. wheat has gained for the last two days as the market was buoyed by
the poor condition of the just-planted winter crop in the United States
and the weather trouble in major exporters Australia and Argentina.
Traders were expecting an increase in demand for U.S. wheat amid the
production problems and tightening supplies in Black Sea countries such
as Ukraine.
"Export demand for U.S. wheat is likely to pick up as other suppliers have been drawing down their stocks," Ker said.
The U.S. corn crop shrank a little from last month to its smallest in
six years, and stocks will remain the tightest in 17 years next summer
despite high prices curbing demand, a Reuters poll of 26 analysts
showed.
A dozen of the analysts expected reduced corn demand from the export and
ethanol sectors and the U.S. livestock industry, where the cattle herd
is the smallest in about 60 years and producers have stepped up hog
slaughter.
Commodity funds bought 4,000 CBOT corn contracts on Tuesday, trade
sources said. They bought 5,000 soybean contracts and bought 2,000
wheat.
Prices at 0307 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 872.75 -4.25 -0.48% -4.41% 873.50 52
CBOT corn 739.00 -2.00 -0.27% -10.29% 766.54 41
CBOT soy 1513.50 -2.00 -0.13% -7.22% 1580.99 39
CBOT rice $15.31 -$0.01 -0.10% -3.86% $15.48 59
WTI crude $88.13 -$0.58 -0.65% -5.60% $88.92 54
Currencies
Euro/dlr $1.281 $0.052 +4.26% +4.28%
USD/AUD 1.043 -0.012 -1.18% -1.34%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral)
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