July 12, 2019 / 3:19 AM / a month ago

GRAINS-Wheat falls but set for first weekly gain in a month

    * Wheat falls from 10-day high touched on Thursday
    * Soybeans flat, set to finish the week up 3%
    * Corn steady, set for second straight weekly gain

    By Colin Packham
    SYDNEY, July 12 (Reuters) - U.S. wheat futures edged lower
on Friday, retreating from a near two-week high touched in the
previous session, but the grain was poised to record its first
weekly gain in a month following forecasts for lower global
production.
    Soybeans held steady as the oilseed was poised to record
weekly gains of nearly 3%, while corn remained unchanged.
    The most active wheat futures contract on the Chicago Board
Of Trade were down 0.1% at $5.20-1/4 a bushel after
rallying more than 3% on Thursday when prices hit a high of
$5.23 a bushel - the highest since July 1. 
    As a result, wheat is on course to finish the week up 1%,
the first weekly gain in a month. 
    Analysts said the U.S. Department of Agriculture's (USDA's)
supply and demand forecast report were driving the weekly gains.
    "The USDA published sharply lower production (and export
estimates for Russia, the world's largest exporter. The USDA
also cut their estimates for the EU, Ukraine, Australia and
Canada," said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia.
    "The new numbers mean a substantial shrinkage in export
expectations in the global wheat market."
    The USDA lowered its forecast of 2019/20 global wheat ending
stocks to 286.46 million tonnes, down from 294.34 million in
June and near the low end of a range of analyst expectations.

    The most active corn futures were steady at $4.48 a
bushel after closing up 1.9% on Thursday.
    Corn is up more than 1% for the week, the second straight
weekly gain.
    The USDA raised its production forecast for corn to 13.875
billion bushels, based on its larger-than-expected June 28
planted acreage estimate of 91.7 million acres.
    The government left its estimate of the U.S. corn yield
unchanged at 166.0 bushels per acre, while most analysts in a
Reuters survey had expected a slight reduction.
    The most active soybean futures were steady at $9.17 a
bushel after closing up 0.9% on Thursday.
    Soybeans are up more than 2.5% for the week, the biggest
weekly gain in a month.
    The USDA lowered its U.S. 2019-20 soybean production
estimate to 3.845 billion bushels, down from 4.150 billion in
June. 
    The USDA cut its soybean yield estimate to 48.5 bushels per
acre, from 49.5 in June, a slightly below market estimates.
        
 Grains prices at  0255 GMT
 Contract      Last   Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat  520.75    -0.75   -0.14%       +3.17%  522.88     60
 CBOT corn   448.00     0.00   +0.00%       +1.93%  441.43     64
 CBOT soy    917.00    -0.25   -0.03%       +0.47%  909.94     57
 CBOT rice    11.90   -$0.03   -0.25%       -0.21%  $11.78     69
 WTI crude    60.47    $0.27   +0.45%       +0.07%  $55.81     69
 Currencies                                                      
 Euro/dlr    $1.126   $0.001   +0.10%       +0.12%               
 USD/AUD     0.6983    0.001   +0.14%       +0.37%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Rashmi Aich)
  
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