Tuesday, 8 January 2013

GRAINS-Soybeans resume fall on bumper South America crop outlook

Tue Jan 8, 2013
SYDNEY, Jan 8 (Reuters) - U.S. soybeans edged lower on Tuesday, falling back slightly from gains made in the previous session when technical buying snapped a four-day slump fuelled by expectations of a bumper South American crop.

FUNDAMENTALS

* Chicago Board Of Trade March soybeans fell 0.11 percent to $13.87 a bushel, having firmed 1.55 percent on Monday.

* March corn was unchanged at $6.85-1/2 a bushel, having gained 0.77 percent in the previous session, the biggest jump since Dec. 21.

* March wheat fell 0.13 percent to $7.50-1/4 a bushel, having closed up 0.54 percent on Monday.

* The wave of technical buying on Monday overcame early sluggishness caused by the impending harvest in South American countries such as Argentina and Brazil.

* Investors are reluctant to stake out big positions ahead of a U.S. Agriculture Department supply-and-demand report on Friday that will provide the final update on 2012 U.S. crop production. Trading has been particularly volatile following the January supply-and-demand report, with corn making limit moves
on the day of the release six times in a row.

* Dry weather is expected in Argentina for the next seven days followed by some light rain, Global Weather Monitoring said.

MARKET NEWS

* The euro rose for a second straight session against the dollar on Monday, buoyed by expectations that the European Central Bank will refrain from cutting interest rates at its meeting later this week.

* Brent crude oil prices were steady above $111 a barrel on Monday while U.S. crude futures edged higher, cutting the spread between the two benchmarks by a penny to its narrowest since September as a U.S. pipeline expansion project neared completion.

* U.S. stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.

  Grains prices at  0134 GMT
  Contract        Last    Change  Pct chg   chg MA 30   RSI
  CBOT wheat     750.25    -1.00  -0.13%    869.42      20
  CBOT corn      685.50     0.00  +0.00%    764.76      30
  CBOT soy      1387.00    -1.50  -0.11%    1576.78     40
  CBOT rice      $15.21    $0.00  -0.03%    $15.47      47
  WTI crude      $93.20    $0.01  +0.01%    $89.09      77
  Currencies                                               
  Euro/dlr       $1.311   $0.082  +6.65%   
  USD/AUD         1.049   -0.006  -0.56%   
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential

(Reporting by Colin Packham; Editing by Michael Urquhart)

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