Monday 23 September 2013

Wheat rises on forecasts for increased Chinese demand

Mon Sep 23, 2013
* Wheat supported by damage to China crop, demand for U.S. exports

* Soybeans, corn under pressure from harvest estimates -analysts

* Soybeans fall to one-month low
By Colin Packham
SYDNEY, Sept 23 (Reuters) - U.S. wheat rose on Monday, rebounding from losses of more than 1.5 percent in the previous session, as forecasts for increased Chinese demand underpinned
gains.

Soybeans fell, touching a one-month low, and corn slid, both under pressure from the advancing U.S. harvest.

Chicago Board of Trade December wheat futures rose 0.3 percent to $6.48-1/4 a bushel by 0252 GMT, having lost 1.6 percent on Friday.

"The support for wheat prices can be attributed to the forecast for China 2013/14 wheat imports at 7.5 million tonnes after weather ruined China's domestic crops," said Joyce Liu,
investment analyst, Phillip Futures Singapore.

The China National Grain and Oils Information Center on Monday increased its projections for Chinese import demand to 7.5 million tonnes, having previously pegged imports at 6.5
million tonnes.

The revised figure would be the highest imports for China in a decade. The bad weather that damaged the Chinese harvest in May and June has boosted demand for U.S. wheat.

U.S. exporters shipped more wheat to global buyers in the week ended Sept. 12 than in any week for more than two decades, with most of the wheat going to Brazil and China, according to
U.S. Department of Agriculture data.

SOYBEANS, CORN PRESSURED

November soybeans fell 0.15 percent to $13.13-1/4 a bushel, a few cents above the session low of $13.07-3/4 a bushel, the lowest since Aug. 23. Soybeans closed down 1.8 percent on Friday.

December corn fell 0.17 percent to $4.50-1/4 a bushel, having closed down 1.9 percent in the previous session.

Both soybeans and corn remain under pressure from the advancing U.S. harvest, which weighed on cash prices, analysts said.

Spot basis bids for corn and soybeans were lower across the U.S. Midwest on Friday, pressured by expectations the harvest will soon be in full swing, grain merchants said.

Traders have highlighted early findings that showed better-than-expected yields in the United States, prompting a widely watched private forecaster to raise its output estimates
for soybeans and corn for 2013.

The forecaster also projected that U.S. soybean plantings for 2014 would reach 83.6 million acres, topping the 2009 record of 77.5 million acres by 8 percent.

  Grains prices at  0252 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI
  CBOT wheat     648.25     2.00  +0.31%    -1.33%     648.46   58
  CBOT corn      450.25    -0.75  -0.17%    -1.32%     468.20   34
  CBOT soy      1313.25    -2.00  -0.15%    -1.96%    1330.54   32
  CBOT rice      $15.58    $0.04  +0.23%    -0.64%     $15.44   50
  WTI crude     $104.65   -$0.10  -0.10%    -0.02%    $107.13   37
  Currencies                                               
  Euro/dlr       $1.352   $0.000  +0.01%    -0.04%
  USD/AUD         0.942    0.003  +0.32%    -0.15%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential

(Editing by Tom Hogue)

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