Wed Aug 8, 2012
* Soybeans firmer after two sessions of losses
* Further rains expected across U.S. Midwest, providing boost for soybean quality
* Market readies for next USDA supply and demand report
By Colin Packham
SYDNEY, Aug 8 (Reuters) - U.S. soybeans firmed on Wednesday, rebounding after two consecutive session of losses as traders locked in profit after further rains were forecast for the U.S. Midwest, aiding the quality of new crops.
Corn eased slightly, extending losses from Tuesday, while wheat tracked corn down.
Chicago Board Of Trade November soybeans rose 0.45 percent to $15.72-3/4 per bushel, having closed down 1.2 percent in the previous session. November soybeans remain down 3.44 percent for the week.
New-crop corn eased 0.12 percent to $7.99-1/4 per bushel after dropping 0.6 percent on Tuesday, while spot wheat fell 0.37 percent to $8.85-3/4 per bushel, having closed down 0.5 percent in the previous session.
"Soybeans looked a bit over sold, they looked a little bit cheap given how tight the global balance is going to be next year," said Victor Thianpiriya, ag strategist at ANZ Bank, of the soybean gains.
"There's also likely to be some positioning going on as well ahead of the U.S. Department of Agriculture report on Friday, which can always throw a bit of a curve ball in."
MARKET EYES USDA REPORT
Grain markets have consolidated this week as the market readies for the next USDA supply and demand report on Friday. Analysts believe the worst drought across the U.S. Midwest in 56 years is likely to drive strong cuts in 2012/13 corn and soybean production estimates.
Analysts polled by Reuters are expecting a big reduction in yields and production. The analysts are expecting the U.S. corn crop to be the smallest in five years at 11.026 billion bushels, less than the USDA's July estimate of 12.970 billion.
The impact on soybeans is likely to be less severe, analysts said, reflecting the recent crop-friendly weather that has arrived during the oilseed's critical yield-setting phase of development.
Further rains are expected on Wednesday and Thursday. World Weather Inc said rainfall of 0.50 inch to 1.0 inch was now forecast in Missouri, west-central Illinois, western and southern Iowa and southern South Dakota. Earlier forecasts had predicted rains at between 0.2 inch and 0.75 inch for the region.
Wet weather last weekend also aided crops in the region, providing a welcomed boost for corn and soybean quality.
In its most recent crop report, the USDA said 29 percent of soybeans remained in good-to-excellent condition for the week ended Aug. 5, snapping six straight weeks in which the crop's health had deteriorated.
The condition of the corn crop dropped 1 percentage point to 23 percent in that category, matching analyst expectations.
Argentina's 2012/13 corn area is expected to fall 20 percent from the previous year to 3.1 million hectares (7.7 million acres), the Buenos Aires Grains Exchange said on Tuesday, further tightening the global picture.
U.S. corn ending stocks were expected to be the smallest in 17 years next summer, the poll of 21 analysts showed.
Soybean ending stocks were seen falling to the lowest levels in at least 32 years.
Grains prices at 0358 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 885.75 -3.25 -0.37% +34.82% 622.18 51
CBOT corn 799.50 -1.00 -0.12% +21.41% 615.24 52
CBOT soy 1572.75 7.00 +0.45% +28.13% 1166.74 39
CBOT rice $15.69 -$0.06 -0.35% +7.14% $14.47 53
WTI crude $93.30 -$0.37 -0.40% -9.38% $98.63 67
Currencies
Euro/dlr $1.239 -$0.055 -4.24% -5.03%
USD/AUD 1.055 0.018 +1.77% +1.74%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Chris Lewis)
* Soybeans firmer after two sessions of losses
* Further rains expected across U.S. Midwest, providing boost for soybean quality
* Market readies for next USDA supply and demand report
By Colin Packham
SYDNEY, Aug 8 (Reuters) - U.S. soybeans firmed on Wednesday, rebounding after two consecutive session of losses as traders locked in profit after further rains were forecast for the U.S. Midwest, aiding the quality of new crops.
Corn eased slightly, extending losses from Tuesday, while wheat tracked corn down.
Chicago Board Of Trade November soybeans rose 0.45 percent to $15.72-3/4 per bushel, having closed down 1.2 percent in the previous session. November soybeans remain down 3.44 percent for the week.
New-crop corn eased 0.12 percent to $7.99-1/4 per bushel after dropping 0.6 percent on Tuesday, while spot wheat fell 0.37 percent to $8.85-3/4 per bushel, having closed down 0.5 percent in the previous session.
"Soybeans looked a bit over sold, they looked a little bit cheap given how tight the global balance is going to be next year," said Victor Thianpiriya, ag strategist at ANZ Bank, of the soybean gains.
"There's also likely to be some positioning going on as well ahead of the U.S. Department of Agriculture report on Friday, which can always throw a bit of a curve ball in."
MARKET EYES USDA REPORT
Grain markets have consolidated this week as the market readies for the next USDA supply and demand report on Friday. Analysts believe the worst drought across the U.S. Midwest in 56 years is likely to drive strong cuts in 2012/13 corn and soybean production estimates.
Analysts polled by Reuters are expecting a big reduction in yields and production. The analysts are expecting the U.S. corn crop to be the smallest in five years at 11.026 billion bushels, less than the USDA's July estimate of 12.970 billion.
The impact on soybeans is likely to be less severe, analysts said, reflecting the recent crop-friendly weather that has arrived during the oilseed's critical yield-setting phase of development.
Further rains are expected on Wednesday and Thursday. World Weather Inc said rainfall of 0.50 inch to 1.0 inch was now forecast in Missouri, west-central Illinois, western and southern Iowa and southern South Dakota. Earlier forecasts had predicted rains at between 0.2 inch and 0.75 inch for the region.
Wet weather last weekend also aided crops in the region, providing a welcomed boost for corn and soybean quality.
In its most recent crop report, the USDA said 29 percent of soybeans remained in good-to-excellent condition for the week ended Aug. 5, snapping six straight weeks in which the crop's health had deteriorated.
The condition of the corn crop dropped 1 percentage point to 23 percent in that category, matching analyst expectations.
Argentina's 2012/13 corn area is expected to fall 20 percent from the previous year to 3.1 million hectares (7.7 million acres), the Buenos Aires Grains Exchange said on Tuesday, further tightening the global picture.
U.S. corn ending stocks were expected to be the smallest in 17 years next summer, the poll of 21 analysts showed.
Soybean ending stocks were seen falling to the lowest levels in at least 32 years.
Grains prices at 0358 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 885.75 -3.25 -0.37% +34.82% 622.18 51
CBOT corn 799.50 -1.00 -0.12% +21.41% 615.24 52
CBOT soy 1572.75 7.00 +0.45% +28.13% 1166.74 39
CBOT rice $15.69 -$0.06 -0.35% +7.14% $14.47 53
WTI crude $93.30 -$0.37 -0.40% -9.38% $98.63 67
Currencies
Euro/dlr $1.239 -$0.055 -4.24% -5.03%
USD/AUD 1.055 0.018 +1.77% +1.74%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Chris Lewis)
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