January 30, 2014 / 4:55 AM / in 4 years

GRAINS-Soybeans near 1-week low, wheat ticks up after deep losses

* U.S. soybeans fall for 3rd day on LatAm supplies
    * Wheat ticks up after falling 2.7 pct on ample supply

    By Naveen Thukral
    SINGAPORE, Jan 30 (Reuters) - Chicago soy lost more ground
on Thursday, hovering around its lowest in almost a week as
near-record supplies from South America are set to intensify
competition for U.S. exporters.
    Wheat edged higher a day after sliding 2.7 percent in the
last session to its weakest in three-and-half years.
    "We are going to see increasing availability of South
American (soy) supplies in the coming weeks which is going
relieve the near term supply tightness," said Luke Mathews,
commodities strategist at the Commonwealth Bank of Australia.
    Chicago Board of Trade March soybeans fell as much as
0.2 percent to $12.66 a bushel, matching Wednesday's near
one-week low.
    Spot month wheat rose 0.3 percent to $5.53-1/4 a
bushel, after falling to $5.50 a bushel, the lowest since
mid-2010. March corn rose 0.1 percent to $4.28 a bushel.
    Recent rains in hot and dry areas of Argentina have boosted
the outlook for soybean production. The market is closely
watching South American weather amid strong demand from China,
the world's top soybean importer. 
    Global buyers are expected to shift their purchases to
Brazil and Argentina from the United States as the harvest
    Argentina will jump-start soy exports over the weeks ahead
as farmers, who have hoarded beans to protect themselves from
the weakening peso and galloping inflation, are forced to sell
by the time harvesting starts in March. 
    In Brazil, strong yields in the country's top soy-growing
state Mato Grosso should guarantee a record harvest for the
country in the 2013/14 crop year. 
    The U.S. Department of Agriculture attache in Brazil on
Tuesday estimated the 2013/14 soybean crop there at 89.5 million
tonnes, above the USDA's official forecast of 89 million tonnes
and sharply up from 81.6 million tonnes last year. 
    A crop of 90 million tonnes would put Brazil ahead of the
United States as the world's top soy producer for the first
    The wheat market, which was supported earlier this week by
strong demand and bitter cold weather in the United States, slid
to its lowest since mid-2010 on Wednesday.
    Temperatures in the southern Midwest winter wheat belt are
forecast to run a few degrees below average, with lows in the
teens and 20s Fahrenheit (minus 12 to minus 4 degrees Celsius).
    Commodity funds sold a net 8,000 CBOT wheat contracts, 7,000
soybean contracts and 6,000 corn contracts, traders said.
  Prices at  0356 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     553.25     1.75  +0.32%    -1.82%     588.88   30
  CBOT corn      428.00     0.50  +0.12%    -0.87%     427.05   52
  CBOT soy      1266.75    -2.50  -0.20%    -1.63%    1296.34   29
  CBOT rice      $15.49    $0.04  +0.23%    +0.03%     $15.45   49
  WTI crude      $97.51    $0.15  +0.15%    +0.10%     $96.09   66
  Euro/dlr       $1.365  -$0.002  -0.18%    -0.32%
  USD/AUD         0.873    0.005  +0.59%    -0.40%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
0 : 0
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