GRAINS-Soybeans bounce 1 pct on technical buying, export sales

Fri Dec 27, 2013 2:58pm EST

* U.S. weekly sales bigger than expected
    * Corn gains limited after China rejects U.S. DDGS -Xinhua
    * Wheat gains on short covering, bargain buying

 (Adds closing prices, soybean comment, weekly milestones)
    By Rod Nickel
    WINNIPEG, Manitoba, Dec 27 (Reuters) - U.S. grains and
soybeans rose on Friday, clawing back some of their earlier
losses during the holiday-shortened week.
    Soybeans gained the most, climbing 1 percent on technical
buying ahead of the expiry of options and bargain buying,
traders said.
    The oilseed also got a boost from the U.S. Department of
Agriculture reporting better-than-expected weekly export sales
of U.S. soybeans and corn.
    Net sales for the 2013/14 marketing year of nearly 1.5
million tonnes of corn far exceeded trade estimates, while
soybean exports of more than 720,000 tonnes also topped
expectations.   
    Chicago Board of Trade (CBOT) January soybeans added 1
percent, or 12-3/4 cents, to $13.31-1/2 a bushel, finishing with
a weekly loss of 0.6 percent. 
    Hot, dry weather until early next week in Argentina, the No.
3 global soybean and corn exporter, was likely to keep a lid on
soy and corn yields, local experts said. 
    Still, the prospect of abundant South American soybean
supplies to compete for exports with U.S. soy early in 2014
weighed on the price outlook.
    "I still think we're top-heavy in beans," said J. Mark
Kinoff, president of Ceres Hedge. "I just don't think we're
going to get enough good news to keep it up in this area."
    CBOT March corn rose 0.3 percent, or 1-1/4 cents, to
$4.27-1/2 a bushel and registered a weekly loss of 1.3 percent. 
    "Exports are providing a bit of support," said Terry Linn,
broker at the Linn Group in Chicago. "The big number in the corn
exports is giving you a bit of a pop here." 
    Corn's gains were limited as China's quality watchdog
confirmed it has rejected two cargoes of dried distillers grains
(DDGs) from the United States after detecting the presence of a
genetically modified (GMO) strain not yet approved by Beijing,
Xinhua News Agency reported on Friday. 
 
    Chicago March wheat gained 0.5 percent, or 3 cents, to
$6.09 a bushel on support from bargain-buying and
short-covering, finishing with a weekly loss of 0.7 percent. The
contract slumped to a low of $6.00-3/4 on Thursday, the weakest
level for the front month since mid-May 2012.
    USDA reported wheat sales of nearly 597,000 tonnes for the
current 2013/14 marketing year, higher than expected, but down
from the prior week's 656,100 tonnes. 
 
    Temperatures are expected to plunge early next week in the
U.S. Midwest, but the coldest areas will be outside of the core
winter wheat belt, agricultural meteorologist Andy Karst of
World Weather Inc said on Friday. 
    
    Prices at 1:38 p.m. CST (1938 GMT)      
                             LAST      NET    PCT     YTD
                                       CHG    CHG     CHG
CBOT corn            427.50     1.25   0.3%  -38.8%
CBOT soy            1331.50    12.75   1.0%   -6.1%
CBOT meal           445.70     4.70   1.1%    6.0%
CBOT soyoil          39.02     0.15   0.4%  -20.6%
CBOT wheat           609.00     3.00   0.5%  -21.7%
CBOT rice          1545.00     1.00   0.1%    4.0%
EU wheat           208.75    -2.25  -1.1%  -16.6%
                                                         
US crude            100.29     0.74   0.7%    9.2%
Dow Jones           16,482        2   0.0%   25.8%
Gold               1214.00     3.70   0.3%  -27.5%
Euro/dollar         1.3738   0.0047   0.3%    4.1%
Dollar Index       80.3640  -0.1200  -0.2%    0.7%
Baltic Freight       2277       30   1.3%  225.8%

    

 (Additional reporting by Julie Ingwersen in Chicago, Nigel Hunt
in London and Colin Packham in Sydney; Editing by Anthony
Barker, Meredith Mazzilli and Marguerita Choy)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.