Wed Dec 5, 2012
* Traders concerned as Brazil soy planting behind schedule
* Wheat up for fist time in 5-days, corn firms
* Informa cuts Argentina 2012/13 corn crop forecast
* FCStone shaves 2 percent off expected Brazil soy output
By Colin Packham
SYDNEY, Dec 5 (Reuters) - U.S. soybeans climbed to their highest in nearly a month on Wednesday and wheat snapped out of a four-day slide as traders continued to worry that unfriendly crop weather in key producing regions would whittle down global supplies.
Corn also gained, after dropping in the previous session, as private analytics firm Informa cut its forecast for Argentina's 2012/13 crop.
"At the moment, the market is on edge, with South American weather hanging over the market," said Victor Thianpiriya, agriculture strategist at ANZ in Singapore.
"The soybean market is being driven by weather developments, and it's still very dry in Brazil."
Chicago Board Of Trade January soybeans rose 0.5 percent to $14.62-1/2 a bushel by 0242 GMT, having touched a session high of $14.64-3/4 a bushel, the highest since Nov. 9.
Soybeans had been underpinned by South American production concerns in recent days, with prices up more than 4 percent over the last two weeks.
Analysts at FCStone do Brasil shaved 2 percent off their estimate for Brazil's 2012/13 soybean crop, citing lower yield expectations due to dryness in the southern producing regions.
The country is likely to produce 80.01 million tonnes of soybeans, down from a September estimate of 81.98 million in a year when Brazil's crop is needed to make up for U.S. drought losses.
Corn and wheat were also supported by weather concerns. CBOT March wheat rose 0.1 percent to $8.57-1/2 a bushel, while March corn edged up 0.2 percent to $7.53-1/2 a bushel.
Crop areas in Argentina, the world's No. 2 corn supplier and No. 3 soybean producer, have been plagued by excessive rains and flooding, while Australia trimmed its production estimates due to damage from dry weather.
Informa Economics cut its Argentina 2012/13 corn crop forecast to 27 million tonnes, from 28 million previously. It also lowered its estimate for Argentina's 2012/13 soybean production to 58.4 million tonnes, from 59.5 million a month ago, citing a reduction in expected plantings.
But it raised its projection for Brazil's 2012/13 soybean crop to 81.4 million tonnes, from 81.25 million previously.
AN EYE ON WEATHER
Traders are expected to continue monitoring South American weather forecasts for further trading cues.
Soybean prices had come under some pressure on Wednesday following forecasts for an improvement in crop conditions in Brazil this week, but analysts remain concerned that planting will not be completed in time.
A cold front off Brazil's southeast coast should bring rain to top soy-growing state Mato Grosso this week, with isolated showers in the south helping farmers finish planting, analysts said earlier this week.
Soy planting is complete in central Brazil, although it is still unfolding in parts of the south after an unusually dry November, putting Brazil's overall sowing at 84 percent of the expected total, compared to 93 percent a year earlier, analyst AgRural had said.
In Argentina, rains expected to hit its grains belt this week will sustain the floods that have fanned global supply worries by swamping and blocking access to key soy, corn and wheat areas.
Grains prices at 0242 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 857.50 1.00 +0.12% -0.69% 877.87 36
CBOT corn 753.50 1.50 +0.20% +0.10% 746.94 54
CBOT soy 1462.50 7.00 +0.48% +1.65% 1473.40 60
CBOT rice $15.46 $0.04 +0.29% +1.21% $15.08 75
WTI crude $88.66 $0.16 +0.18% -0.28% $86.71 58
Currencies
Euro/dlr $1.311 $0.005 +0.41% +0.95%
USD/AUD 1.048 0.006 +0.55% +0.47%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
* Traders concerned as Brazil soy planting behind schedule
* Wheat up for fist time in 5-days, corn firms
* Informa cuts Argentina 2012/13 corn crop forecast
* FCStone shaves 2 percent off expected Brazil soy output
By Colin Packham
SYDNEY, Dec 5 (Reuters) - U.S. soybeans climbed to their highest in nearly a month on Wednesday and wheat snapped out of a four-day slide as traders continued to worry that unfriendly crop weather in key producing regions would whittle down global supplies.
Corn also gained, after dropping in the previous session, as private analytics firm Informa cut its forecast for Argentina's 2012/13 crop.
"At the moment, the market is on edge, with South American weather hanging over the market," said Victor Thianpiriya, agriculture strategist at ANZ in Singapore.
"The soybean market is being driven by weather developments, and it's still very dry in Brazil."
Chicago Board Of Trade January soybeans rose 0.5 percent to $14.62-1/2 a bushel by 0242 GMT, having touched a session high of $14.64-3/4 a bushel, the highest since Nov. 9.
Soybeans had been underpinned by South American production concerns in recent days, with prices up more than 4 percent over the last two weeks.
Analysts at FCStone do Brasil shaved 2 percent off their estimate for Brazil's 2012/13 soybean crop, citing lower yield expectations due to dryness in the southern producing regions.
The country is likely to produce 80.01 million tonnes of soybeans, down from a September estimate of 81.98 million in a year when Brazil's crop is needed to make up for U.S. drought losses.
Corn and wheat were also supported by weather concerns. CBOT March wheat rose 0.1 percent to $8.57-1/2 a bushel, while March corn edged up 0.2 percent to $7.53-1/2 a bushel.
Crop areas in Argentina, the world's No. 2 corn supplier and No. 3 soybean producer, have been plagued by excessive rains and flooding, while Australia trimmed its production estimates due to damage from dry weather.
Informa Economics cut its Argentina 2012/13 corn crop forecast to 27 million tonnes, from 28 million previously. It also lowered its estimate for Argentina's 2012/13 soybean production to 58.4 million tonnes, from 59.5 million a month ago, citing a reduction in expected plantings.
But it raised its projection for Brazil's 2012/13 soybean crop to 81.4 million tonnes, from 81.25 million previously.
AN EYE ON WEATHER
Traders are expected to continue monitoring South American weather forecasts for further trading cues.
Soybean prices had come under some pressure on Wednesday following forecasts for an improvement in crop conditions in Brazil this week, but analysts remain concerned that planting will not be completed in time.
A cold front off Brazil's southeast coast should bring rain to top soy-growing state Mato Grosso this week, with isolated showers in the south helping farmers finish planting, analysts said earlier this week.
Soy planting is complete in central Brazil, although it is still unfolding in parts of the south after an unusually dry November, putting Brazil's overall sowing at 84 percent of the expected total, compared to 93 percent a year earlier, analyst AgRural had said.
In Argentina, rains expected to hit its grains belt this week will sustain the floods that have fanned global supply worries by swamping and blocking access to key soy, corn and wheat areas.
Grains prices at 0242 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 857.50 1.00 +0.12% -0.69% 877.87 36
CBOT corn 753.50 1.50 +0.20% +0.10% 746.94 54
CBOT soy 1462.50 7.00 +0.48% +1.65% 1473.40 60
CBOT rice $15.46 $0.04 +0.29% +1.21% $15.08 75
WTI crude $88.66 $0.16 +0.18% -0.28% $86.71 58
Currencies
Euro/dlr $1.311 $0.005 +0.41% +0.95%
USD/AUD 1.048 0.006 +0.55% +0.47%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
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