Tue Nov 27, 2012
* Condition of U.S. winter wheat hits November low
* Soybeans supported by Brazil weather concerns
* Grain complex supported by agreement over Greece bailout
By Colin Packham
SYDNEY, Nov 27 (Reuters) - U.S. wheat struck a one-week high on Tuesday after the U.S. Department of Agriculture said the condition of the winter crop hit an all-time November low, following dry weather across the Plains.
Soybeans rose nearly 1 percent to a two-week high on concerns over unfavorable crop weather in Brazil threatening a forecast bumper crop, while corn also firmed.
The grains and oilseed complex was buoyed by news that Euro zone finance ministers and the International Monetary Fund clinched agreement on reducing Greece's debt on Monday in a breakthrough to release urgently-needed loans to keep the near-bankrupt economy afloat.
Chicago Board of Trade December wheat rose 0.5 percent to $8.53-1/2 by 0322 GMT, having hit a session high of $8.54-1/2 a bushel, its highest since November 15.
"The U.S. hard red crop is looking really poor," said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
"The European market is running out of stock, the Black Sea is running out of stock and now, with the U.S. production profile going down, it is very supportive for wheat."
January soybeans rose 0.79 percent to $14.36 a bushel, but off a two-week high of $14.40-1/2 a bushel hit earlier in the day. Soybeans closed up 0.42 percent on Monday.
December corn rose 0.33 percent to $7.49-3/4 a bushel, having firmed 0.24 percent in the previous session.
WEATHER IMPACT
Wheat rose after the USDA said ratings for the U.S. winter wheat crop fell to 33 percent good to excellent, an all-time low for late November, due to dry conditions in the U.S. Plains, as the plants headed into winter dormancy.
While matching estimates, analysts said, the threat of a smaller than expected U.S. crop would feed into concerns of tight global wheat stocks, already stretched following weather disrupted seasons in the Black Sea region, and the threat of an Australian crop that is smaller than anticipated.
Meteorologists warned of further dry weather across the U.S. Plains for the next two weeks.
Traders continue to monitor weather patterns in Brazil, amid forecasts for dry weather in southern areas.
Grains prices at 0322 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 853.25 4.25 +0.50% +0.65% 862.46 49
CBOT corn 749.75 2.50 +0.33% +0.57% 742.14 65
CBOT soy 1436.00 11.25 +0.79% +1.22% 1485.88 51
CBOT rice $15.03 $0.11 +0.74% -0.03% $15.08 58
WTI crude $87.94 $0.20 +0.23% -0.39% $87.20 53
Currencies
Euro/dlr $1.298 $0.001 +0.05% +0.02%
USD/AUD 1.047 0.002 +0.14% +0.15%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Clarence Fernandez)
* Condition of U.S. winter wheat hits November low
* Soybeans supported by Brazil weather concerns
* Grain complex supported by agreement over Greece bailout
By Colin Packham
SYDNEY, Nov 27 (Reuters) - U.S. wheat struck a one-week high on Tuesday after the U.S. Department of Agriculture said the condition of the winter crop hit an all-time November low, following dry weather across the Plains.
Soybeans rose nearly 1 percent to a two-week high on concerns over unfavorable crop weather in Brazil threatening a forecast bumper crop, while corn also firmed.
The grains and oilseed complex was buoyed by news that Euro zone finance ministers and the International Monetary Fund clinched agreement on reducing Greece's debt on Monday in a breakthrough to release urgently-needed loans to keep the near-bankrupt economy afloat.
Chicago Board of Trade December wheat rose 0.5 percent to $8.53-1/2 by 0322 GMT, having hit a session high of $8.54-1/2 a bushel, its highest since November 15.
"The U.S. hard red crop is looking really poor," said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
"The European market is running out of stock, the Black Sea is running out of stock and now, with the U.S. production profile going down, it is very supportive for wheat."
January soybeans rose 0.79 percent to $14.36 a bushel, but off a two-week high of $14.40-1/2 a bushel hit earlier in the day. Soybeans closed up 0.42 percent on Monday.
December corn rose 0.33 percent to $7.49-3/4 a bushel, having firmed 0.24 percent in the previous session.
WEATHER IMPACT
Wheat rose after the USDA said ratings for the U.S. winter wheat crop fell to 33 percent good to excellent, an all-time low for late November, due to dry conditions in the U.S. Plains, as the plants headed into winter dormancy.
While matching estimates, analysts said, the threat of a smaller than expected U.S. crop would feed into concerns of tight global wheat stocks, already stretched following weather disrupted seasons in the Black Sea region, and the threat of an Australian crop that is smaller than anticipated.
Meteorologists warned of further dry weather across the U.S. Plains for the next two weeks.
Traders continue to monitor weather patterns in Brazil, amid forecasts for dry weather in southern areas.
Grains prices at 0322 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 853.25 4.25 +0.50% +0.65% 862.46 49
CBOT corn 749.75 2.50 +0.33% +0.57% 742.14 65
CBOT soy 1436.00 11.25 +0.79% +1.22% 1485.88 51
CBOT rice $15.03 $0.11 +0.74% -0.03% $15.08 58
WTI crude $87.94 $0.20 +0.23% -0.39% $87.20 53
Currencies
Euro/dlr $1.298 $0.001 +0.05% +0.02%
USD/AUD 1.047 0.002 +0.14% +0.15%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Clarence Fernandez)
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