Mon Apr 15, 2013
* Corn futures fall for 1st time in six sessions
* Soybeans near 2-week top on firm cash market
* China's Q1 GDP growth eases to 7.7 pct yr/yr
By Naveen Thukral
SINGAPORE, April 15 (Reuters) - U.S. wheat slid almost 1 percent on Monday, giving up some of last session's strong gains, while corn snapped a five-session winning streak as
slowing growth in China triggered a broad-based decline in commodities.
Soybeans were little changed, holding near Friday's two-week high on tight supplies and higher prices in the physical market.
China's economic recovery unexpectedly stumbled in the first three months of 2013 as the annual rate of growth eased back to 7.7 percent from the 7.9 percent pace set in the final quarter
of last year, official data showed on Monday.
The figures, announced by the National Bureau of Statistics, were weaker than market expectations in the consensus Reuters poll of a 8.0 percent expansion.
"China's weaker-than-expected GDP is contributing to the risk-off attitude," said Luke Mathews, a commodities strategist at Commonwealth Bank of Australia. "It is likely to be a
negative influence for the agricultural markets."
Chicago Board of Trade May wheat fell 0.9 percent to $7.08-1/4 a bushel by 0304 GMT and May corn lost 0.8 percent to $6.53-1/2 a bushel. May soybeans dipped 0.07 percent to $14.12 a bushel, near Friday's peak of $14.19.
Commodities dropped across the board after bearish Chinese data, with crude oil slipping about $2 a barrel, gold shedding almost 1 percent and London copper hitting an 8-month low.
But losses in the agricultural market were limited by bullish fundamentals which drove wheat, corn and soybeans higher last week.
U.S. wheat futures rose 2.4 percent on Friday, rallying through key technical resistance amid signs of good export demand and worries about the health of the U.S. crop after
winter storms.
Agricultural meteorologists say temperatures this week might fall to the 20-to-30-degree Fahrenheit range in the U.S. Plains hard red winter wheat region, posing a threat of more freeze
damage to the growing crop.
Some hard red winter wheat, which has struggled with dry soils since planting, has already suffered damage during the last week due to wintry conditions in the Plains, analysts said.
Chinese buying is providing additional support to wheat.
China's largest purchase of U.S. soft red winter wheat in at least nine years was confirmed by the U.S. Agriculture Department last week and should be followed by more big purchases this year as Beijing rebuilds depleted reserves.
The country is seen taking advantage of cheap imports to meet its growing need for livestock feed, analysts and trade sources said. Wheat prices are down about 9 percent so far
this year.
Wet and cold weather in the U.S. crop belt is also delaying corn plantings, which could underpin the market.
"The biggest driver over the next two weeks is going to be weather developments and those weather developments at the moment look relatively supportive for grains and oilseeds,"
Mathews said.
The soybean market is being underpinned by strong nearby demand from processors and slow farmer sales of old-crop supplies.
Soybean spot basis bids rose sharply at processors and river terminals around the U.S. Midwest on Friday as rising futures and the strongest bids ever for this time of year failed to
entice farmer selling.
Still, large speculators cut their net long positions on CBOT corn and soybean futures, turning bearish on corn, as more supplies became available from Argentina and Brazil, according
to regulatory data released on Friday.
The U.S. Commodity Futures Trading Commission's weekly Commitments of Traders report showed that the noncommercial traders slashed their bullish bet on CBOT soybeans by 49.2
percent, giving them their smallest net long in the commodity since January 2012.
Prices at 0304 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 708.25 -6.50 -0.91% 868.02 53
CBOT corn 653.50 -5.00 -0.76% 763.69 41
CBOT soy 1412.00 -1.00 -0.07% 1577.61 53
CBOT rice $15.78 -$0.04 -0.25% $15.49 66
WTI crude $89.54 -$1.75 -1.92% $88.97 24
Currencies
Euro/dlr $1.308 $0.079
USD/AUD 1.043 -0.012
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Himani Sarkar)
* Corn futures fall for 1st time in six sessions
* Soybeans near 2-week top on firm cash market
* China's Q1 GDP growth eases to 7.7 pct yr/yr
By Naveen Thukral
SINGAPORE, April 15 (Reuters) - U.S. wheat slid almost 1 percent on Monday, giving up some of last session's strong gains, while corn snapped a five-session winning streak as
slowing growth in China triggered a broad-based decline in commodities.
Soybeans were little changed, holding near Friday's two-week high on tight supplies and higher prices in the physical market.
China's economic recovery unexpectedly stumbled in the first three months of 2013 as the annual rate of growth eased back to 7.7 percent from the 7.9 percent pace set in the final quarter
of last year, official data showed on Monday.
The figures, announced by the National Bureau of Statistics, were weaker than market expectations in the consensus Reuters poll of a 8.0 percent expansion.
"China's weaker-than-expected GDP is contributing to the risk-off attitude," said Luke Mathews, a commodities strategist at Commonwealth Bank of Australia. "It is likely to be a
negative influence for the agricultural markets."
Chicago Board of Trade May wheat fell 0.9 percent to $7.08-1/4 a bushel by 0304 GMT and May corn lost 0.8 percent to $6.53-1/2 a bushel. May soybeans dipped 0.07 percent to $14.12 a bushel, near Friday's peak of $14.19.
Commodities dropped across the board after bearish Chinese data, with crude oil slipping about $2 a barrel, gold shedding almost 1 percent and London copper hitting an 8-month low.
But losses in the agricultural market were limited by bullish fundamentals which drove wheat, corn and soybeans higher last week.
U.S. wheat futures rose 2.4 percent on Friday, rallying through key technical resistance amid signs of good export demand and worries about the health of the U.S. crop after
winter storms.
Agricultural meteorologists say temperatures this week might fall to the 20-to-30-degree Fahrenheit range in the U.S. Plains hard red winter wheat region, posing a threat of more freeze
damage to the growing crop.
Some hard red winter wheat, which has struggled with dry soils since planting, has already suffered damage during the last week due to wintry conditions in the Plains, analysts said.
Chinese buying is providing additional support to wheat.
China's largest purchase of U.S. soft red winter wheat in at least nine years was confirmed by the U.S. Agriculture Department last week and should be followed by more big purchases this year as Beijing rebuilds depleted reserves.
The country is seen taking advantage of cheap imports to meet its growing need for livestock feed, analysts and trade sources said. Wheat prices are down about 9 percent so far
this year.
Wet and cold weather in the U.S. crop belt is also delaying corn plantings, which could underpin the market.
"The biggest driver over the next two weeks is going to be weather developments and those weather developments at the moment look relatively supportive for grains and oilseeds,"
Mathews said.
The soybean market is being underpinned by strong nearby demand from processors and slow farmer sales of old-crop supplies.
Soybean spot basis bids rose sharply at processors and river terminals around the U.S. Midwest on Friday as rising futures and the strongest bids ever for this time of year failed to
entice farmer selling.
Still, large speculators cut their net long positions on CBOT corn and soybean futures, turning bearish on corn, as more supplies became available from Argentina and Brazil, according
to regulatory data released on Friday.
The U.S. Commodity Futures Trading Commission's weekly Commitments of Traders report showed that the noncommercial traders slashed their bullish bet on CBOT soybeans by 49.2
percent, giving them their smallest net long in the commodity since January 2012.
Prices at 0304 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 708.25 -6.50 -0.91% 868.02 53
CBOT corn 653.50 -5.00 -0.76% 763.69 41
CBOT soy 1412.00 -1.00 -0.07% 1577.61 53
CBOT rice $15.78 -$0.04 -0.25% $15.49 66
WTI crude $89.54 -$1.75 -1.92% $88.97 24
Currencies
Euro/dlr $1.308 $0.079
USD/AUD 1.043 -0.012
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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