Tue Feb 19, 2013
* Soybeans rise 1.4 pct on poor rains in Argentina
* Wheat up for 2nd day on strong demand for U.S. supply
* Market eyes Chinese buying after Lunar new year break
By Naveen Thukral
SINGAPORE, Feb 19 (Reuters) - U.S. soybeans rose 1.4 percent to a one-week high on Tuesday as disappointing rains across Argentina's parched crop-belt buoyed the market amid expectations of Chinese buying after the Lunar New Year break.
Wheat futures rose for a second consecutive day with the market underpinned by strong demand for U.S. supplies, while corn was little changed after closing higher in the last session.
The rain that had been expected to bring relief to wilting Argentine soybean and corn crops over the weekend was lighter than expected, raising the prospect of lower yields in the 2012/13 harvest, a weather specialist said.
The scant rains and high temperatures worrying Argentine farmers since January have started to hit the development of corn and soy, particularly later-planted crops.
Argentina is the world's third-biggest exporter of soybeans. Importers are desperately looking to Brazil and Argentine to replenish tight global supplies following a devastating drought in the United States last year.
"The bounce in soybeans has got to do with South American weather as rains in Argentina were a little disappointing," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
"The support for U.S. grain markets is coming from last week's long awaited improvement in U.S. wheat export sales activity."
Chicago Board of Trade March soybeans rose 1.4 percent to $14.43-3/4 a bushel, the highest since February 11. March wheat added 0.2 percent to $7.43-1/2 a bushel while March corn gave up 0.1 percent to $6.97-3/4 a bushel.
China, the world's biggest soybean importer, is likely to resume purchases as factories open after a week-long Lunar New Year break.
China imported 4.78 million tonnes of soybeans in January, down 18.8 percent from 5.89 million tonnes in December, according to figures from the General Administration of Customs of China.
In the United States, soybean processors crushed 158.195 million bushels of soybeans in January, the second-largest monthly total in three years, the National Oilseed Processors Association said on Friday.
The wheat market has been supported by strong demand for U.S. grains as supplies shrink in other exporters such as Australia and Europe.
South Korea's Samyang Milmax Corp bought 24,000 tonnes of U.S. origin milling wheat on Friday, while a Brazilian miller earlier purchased at least 100,000 tonnes of U.S. hard red winter wheat for prompt shipment.
The U.S. Department of Agriculture (USDA) on Thursday reported weekly export sales of wheat for the current and new marketing year at 706,300 tonnes, a seven-week high that topped trade expectations for 275,000 to 400,000 tonnes.
There was additional support for the benchmark U.S. wheat futures with adverse weather hurting crop prospects in Europe.
Heavy rain and saturated soil are threatening to reduce wheat and rapeseed production in western Europe this year with the most serious problems in Britain, crop analysts said. The outlook in top producer France is also deteriorating.
Large speculators sharply reduced their bullish bets on U.S. corn futures to the lowest level since June, erasing a four-week buildup of their net long position in a single week, regulatory data released on Friday showed.
The noncommercial traders, a category that includes hedge funds, also expanded their net short position in Chicago Board of Trade wheat to the largest in five weeks and boosted their net long holdings in soybeans to a fresh three-month high.
Prices at 0248 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 743.50 1.25 +0.17% 869.19 43
CBOT corn 697.75 -1.00 -0.14% 765.17 31
CBOT soy 1443.75 19.25 +1.35% 1578.67 50
CBOT rice $15.75 -$0.09 -0.54% $15.49 49
WTI crude $95.67 -$0.19 -0.20% $89.17 40
Currencies
Euro/dlr $1.334 $0.105 +8.56%
USD/AUD 1.032 -0.024 -2.23%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral and Miral Fahmy)
* Soybeans rise 1.4 pct on poor rains in Argentina
* Wheat up for 2nd day on strong demand for U.S. supply
* Market eyes Chinese buying after Lunar new year break
By Naveen Thukral
SINGAPORE, Feb 19 (Reuters) - U.S. soybeans rose 1.4 percent to a one-week high on Tuesday as disappointing rains across Argentina's parched crop-belt buoyed the market amid expectations of Chinese buying after the Lunar New Year break.
Wheat futures rose for a second consecutive day with the market underpinned by strong demand for U.S. supplies, while corn was little changed after closing higher in the last session.
The rain that had been expected to bring relief to wilting Argentine soybean and corn crops over the weekend was lighter than expected, raising the prospect of lower yields in the 2012/13 harvest, a weather specialist said.
The scant rains and high temperatures worrying Argentine farmers since January have started to hit the development of corn and soy, particularly later-planted crops.
Argentina is the world's third-biggest exporter of soybeans. Importers are desperately looking to Brazil and Argentine to replenish tight global supplies following a devastating drought in the United States last year.
"The bounce in soybeans has got to do with South American weather as rains in Argentina were a little disappointing," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
"The support for U.S. grain markets is coming from last week's long awaited improvement in U.S. wheat export sales activity."
Chicago Board of Trade March soybeans rose 1.4 percent to $14.43-3/4 a bushel, the highest since February 11. March wheat added 0.2 percent to $7.43-1/2 a bushel while March corn gave up 0.1 percent to $6.97-3/4 a bushel.
China, the world's biggest soybean importer, is likely to resume purchases as factories open after a week-long Lunar New Year break.
China imported 4.78 million tonnes of soybeans in January, down 18.8 percent from 5.89 million tonnes in December, according to figures from the General Administration of Customs of China.
In the United States, soybean processors crushed 158.195 million bushels of soybeans in January, the second-largest monthly total in three years, the National Oilseed Processors Association said on Friday.
The wheat market has been supported by strong demand for U.S. grains as supplies shrink in other exporters such as Australia and Europe.
South Korea's Samyang Milmax Corp bought 24,000 tonnes of U.S. origin milling wheat on Friday, while a Brazilian miller earlier purchased at least 100,000 tonnes of U.S. hard red winter wheat for prompt shipment.
The U.S. Department of Agriculture (USDA) on Thursday reported weekly export sales of wheat for the current and new marketing year at 706,300 tonnes, a seven-week high that topped trade expectations for 275,000 to 400,000 tonnes.
There was additional support for the benchmark U.S. wheat futures with adverse weather hurting crop prospects in Europe.
Heavy rain and saturated soil are threatening to reduce wheat and rapeseed production in western Europe this year with the most serious problems in Britain, crop analysts said. The outlook in top producer France is also deteriorating.
Large speculators sharply reduced their bullish bets on U.S. corn futures to the lowest level since June, erasing a four-week buildup of their net long position in a single week, regulatory data released on Friday showed.
The noncommercial traders, a category that includes hedge funds, also expanded their net short position in Chicago Board of Trade wheat to the largest in five weeks and boosted their net long holdings in soybeans to a fresh three-month high.
Prices at 0248 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 743.50 1.25 +0.17% 869.19 43
CBOT corn 697.75 -1.00 -0.14% 765.17 31
CBOT soy 1443.75 19.25 +1.35% 1578.67 50
CBOT rice $15.75 -$0.09 -0.54% $15.49 49
WTI crude $95.67 -$0.19 -0.20% $89.17 40
Currencies
Euro/dlr $1.334 $0.105 +8.56%
USD/AUD 1.032 -0.024 -2.23%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral and Miral Fahmy)
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