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GRAINS-Chicago wheat climbs over 1 pct on U.S. dryness, weaker dollar
March 20, 2017 / 1:37 AM / 5 months ago

GRAINS-Chicago wheat climbs over 1 pct on U.S. dryness, weaker dollar

    SINGAPORE, March 20 (Reuters) - Chicago wheat hit its
highest in a week on Monday, buoyed by a weaker dollar and
concerns over a lack of moisture for the U.S. winter crop.
    Corn and soybean prices rose in early Asian trade, although
gains were limited by bumper South American supplies.
    
    FUNDAMENTALS
    * Dry weather for hard red winter wheat growing regions in
the United States is supporting wheat prices with forecast rains
later this week unlikely to provide much moisture, analysts
said.
    * The dollar stayed on the defensive in Asia with bulls
still nursing a grudge after the Federal Reserve's rate guidance
last week proved to be less "hawkish" than many had wagered on.

    * A weakening U.S. dollar, which makes U.S. commodities more
attractive to overseas buyers as well as investors looking for a
hedge against inflation, provided some support to grains and
oilseeds.
    * Abundant supplies and the prospects for strong South
American harvests of soybeans and corn limited gains.
    * Argentine corn and soybeans should benefit from high
yields brought by good weather, the Buenos Aires Grains Exchange
said last week, adding it might increase its soybean harvest
estimate.
    * Workers at Argentina's biggest agricultural port hub,
Rosario, have voted to hold a 24-hour strike on March 30 to
demand better wages and an end to dismissals, a union leader
said Saturday.
    * The stoppage will likely affect the shipment of grains and
their by-products from global food supplier Argentina, where
companies such as Cargill          , Bunge and Louis
Dreyfus <BG.N > have their own terminals.
    * Large speculators switched to a net short position in
Chicago Board of Trade corn futures in the week to March 14,
regulatory data released on Friday showed.
    * The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and cut their net long position
in soybeans.
    
    MARKET NEWS
    * Asian stocks were slightly weaker early on Monday,
following Wall Street's declines and the G20's decision to drop
a pledge to avoid trade protectionism.
    
    DATA/EVENT AHEAD (GMT)
0700  Germany     Producer prices         Feb 
1000  Euro zone   Labour costs            Q4 
1230  U.S.        National activity index Feb
    

 Grains prices at  0108 GMT
 Contract    Last     Change  Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  441.50   5.25    +1.20%   +1.26%       449.71   65
 CBOT corn   369.75   2.25    +0.61%   +1.02%       373.48   59
 CBOT soy    1003.50  3.50    +0.35%   +0.20%       1033.53  44
 CBOT rice   9.93     $0.01   +0.15%   +1.02%       $9.71    82
 WTI crude   48.33    -$0.45  -0.92%   -0.86%       $51.98   28
 Currencies                                                  
 Euro/dlr    $1.075   $0.002  +0.16%   -0.10%                
 USD/AUD     0.7709   0.001   +0.14%   +0.42%                
 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Joseph Radford)
  

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