September 28, 2017 / 8:17 PM / 10 months ago

GRAINS-Soy at 2-week low on U.S. harvest, adjustments ahead of USDA

    * Soyoil futures fall on biodiesel uncertainty
    * Wheat retreats a day after recording one-month high
    * Corn follows weak trend
    * USDA's small grains, quarterly stocks reports awaited

 (New throughout; updates prices, adds quotes, changes byline,
dateline, previous PARIS/SINGAPORE)
    By Julie Ingwersen
    CHICAGO, Sept 28 (Reuters) - U.S. soybean futures fell to a
two-week low on Thursday on pressure from the expanding U.S.
harvest and technical selling a day ahead of key U.S. government
crop reports, analysts said.
    Wheat and corn followed the lower trend as traders adjusted
positions ahead of the U.S. Department of Agriculture's small
grains and quarterly stocks reports, both due on Friday.
    Chicago Board of Trade November soybeans settled down
6 cents at $9.59-1/2 per bushel. CBOT December wheat ended
down 6-1/2 cents at $4.55 a bushel and December corn fell
1-1/2 cents at $3.52-1/2 a bushel.
    Soybeans sagged on seasonal pressure as combines rolled in
much of the Midwest crop belt amid favorably dry conditions for
    "Good U.S. weather has taken a toll on corn and bean
prices," said Terry Reilly, senior commodity analyst with
Futures International.
    Adding to the weak tone in soybeans was a slide in CBOT
soyoil futures tied to uncertainty about demand for U.S.
biodiesel fuel, which is made from soyoil. 
    Soyoil has been under pressure since the U.S. Environmental
Protection Agency on Tuesday said it was seeking comment on a
proposal to reduce 2018 biodiesel blending requirements under
the U.S. renewable fuel standard (RFS).
    "It's positioning ahead of the (USDA) report, plus the
worries about the RFS," Reilly said of the declines in grains in
    Meanwhile, Argentina's government is negotiating a minimum
price for its biodiesel exports to the United States that it
hopes could replace punitive tariffs implemented last month, a
foreign ministry official told Reuters.
    CBOT soybeans fell despite the USDA reporting the
third-largest weekly soybean export sales total on record, at
just over 3.1 million tonnes for old- and new-crop marketing
years combined.
    Of the total, 1.4 million tonnes of soybeans were earmarked
for China, the world's top buyer. Chinese importers have been
taking advantage of a harvest-time slide in U.S. soybean prices
to ramp up buying at a time when supplies from rival exporter
Brazil have thinned.
    CBOT wheat fell in a profit-taking setback a day after the
December contract recorded a one-month high on technical
buying and short-covering.
    Ahead of the USDA's small grains report, analysts surveyed
by Reuters on average expect the government to lower its
estimate of U.S. 2017 wheat production.
    For corn, analysts expect the USDA to report U.S. Sept. 1
corn stocks at 2.353 billion bushels, which would be the largest
since 1988.
    CBOT settlement prices:
                                 Net     Pct  Volume
                        Last  change  change        
 CBOT wheat     WZ7   455.00   -6.50    -1.4   55519
 CBOT corn      CZ7   352.50   -1.50    -0.4  118768
 CBOT soybeans  SX7   959.50   -6.00    -0.6   97012
 CBOT soymeal   SMZ7  311.50   -1.80    -0.6   58654
 CBOT soyoil    BOZ7   32.82   -0.40    -1.2  100900
    NOTE: CBOT December wheat, December corn and November
soybeans shown in cents per bushel, December soymeal in dollars
per short ton and December soyoil in cents per lb.

 (Additional reporting by Naveen Thukral in Singapore and Gus
Trompiz in Paris; Editing by David Clarke  and Marguerita Choy)
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