Monday, 25 November 2013

Wheat firms on expectations of overseas demand

Mon Nov 25, 2013
* Wheat firms more than 0.5 pct

* Its two-day gains near 1 pct

* Soybeans fall on profit-taking, corn tracks higher
By Colin Packham
SYDNEY, Nov 25 (Reuters) - U.S. wheat futures rose on Monday, extending gains into a second straight session for the first time in a month, as production concerns in other key
exporters buoyed expectations for increased demand.

Soybeans fell for the first time in three sessions as traders banked profits, while corn tracked wheat higher.

Chicago Board of Trade March wheat rose 0.61 percent to $6.61 a bushel, having closed up 0.34 percent in the previous session.

Wheat futures last rose for two consecutive sessions on Oct. 22 and 23.

"The gains are being driven by the rising competitiveness of U.S. wheat," said Vanessa Tan, investment analyst at Phillip Futures Singapore.

"Previously you have seen tenders bypassing U.S. wheat, but now with Australia for one seeing unfavorable weather conditions, this could shift demand to the U.S."

Unseasonal rains in Western Australia and frost on the country's east coast have hit wheat crops in the world's No.2 exporter of the grain, dragging down quality and reducing harvests.

Elsewhere, the Rosario Grains Exchange last week forecast Argentina's wheat crop at 9.1 million tonnes in its first estimate of the season, well below the 11-million-tonne view of
the U.S. Department of Agriculture.

January soybeans fell 0.23 percent to $13.16-1/2 a bushel, having closed up 2.2 percent on Friday.

Soybeans had drawn support from strong export demand, analysts said.

The USDA confirmed on Friday that private sales of 115,000 tonnes of U.S. soybeans to China.

The USDA in its weekly report on Thursday said soybean sales last week were well above expectations at nearly 1.4 million tonnes.

December corn rose 0.18 percent to $4.23 a bushel, having closed down 0.2 percent the session before.

  Grains prices at  0324 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI
  CBOT wheat     661.00     4.00  +0.61%    +1.89%     667.37   55
  CBOT corn      423.00     0.75  +0.18%    +0.00%     430.15   48
  CBOT soy      1316.50    -3.00  -0.23%    +1.94%    1281.82   64
  CBOT rice      $15.73    $0.02  +0.10%    -0.51%     $15.52   51
  WTI crude      $94.04   -$0.80  -0.84%    -0.84%     $95.91   45
  Currencies                                               
  Euro/dlr       $1.354  -$0.001  -0.10%    +0.47%
  USD/AUD         0.916    0.000  -0.04%    -0.77%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential

(Editing by Joseph Radford)

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