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GRAINS-U.S. soy up on technical buying, yield concerns; corn, wheat dip
August 29, 2013 / 3:57 PM / 4 years ago

GRAINS-U.S. soy up on technical buying, yield concerns; corn, wheat dip

* Heat, dryness raises worries about cut to soy harvest
    * Wheat falls on profit taking, export concerns
    * Corn futures fall as traders square positions

 (Recasts with early U.S. trading, new analyst quote, changes
byline, dateline, pvs HAMBURG)
    By Mark Weinraub
    CHICAGO, Aug 29 (Reuters) - U.S. soybean futures rose on
Thursday, supported by technical buying as well as worries that
dry weather in western areas of the U.S. Midwest and high
temperatures will reduce the size of this year's harvest.
    Corn futures were slightly lower, with consolidation trade
and position squaring a major feature ahead of the upcoming U.S.
Labor Day holiday On Monday, as well as the end of the month.
Corn was more mature than soybeans and better positioned to
withstand the heat, which kept it from rallying even with
temperatures rising.
    Wheat futures fell as traders locked in profits amid
concerns that U.S. wheat was too pricey to compete on the world
market. The price declines erased nearly all of the gains piled
up on the back of corn and soy rallies early this week. 
    "The soy complex is really the only one that has got any
fresh news that is really worth talking about," said Karl
Setzer, analyst for MaxYield Cooperative. "There is still time
for some loss on soybean yields. Whatever damage that is going
to be done to the corn has already been done."
    The recent stretch of hot weather will likely cut down the
size of the final U.S. soybean harvest, Setzer said, and force
the U.S. Agriculture Department to tighten up its balance sheet.
    At 10:40 a.m. CDT (1540 GMT), Chicago Board of Trade
September soybean futures were up 13-3/4 cents at
$14.46-3/4 per bushel. The new-crop November contract was
2-1/2 cents higher at $13.75-1/4 a bushel.
    First notice day for the September contract is on Friday.
Expectations for no deliveries added support to prices. 
    The weather forecast calls for temperatures to remain in the
90s Fahrenheit (32-38 degrees Celsius) across much of the Corn
Belt for the next few days. The next good chance for a
widespread rain will come on Sunday or Monday, with showers
totaling between 0.2 to 0.8 inch (0.5-2 cm) of rain in northern
and eastern parts of the Crop Belt, missing parched areas of
west of the Mississippi River.
    Those storms will likely be the last chance to boost crop
    "By the time we get to next weekend, it is a question of how
much good the rain will do for the crops," said John Dee,
meteorologist at Global Weather Monitoring.
    CBOT September corn was down 3-1/4 cents at $5.01 a
bushel. The new-crop December contract dropped 1-1/4 cents
to $4.79-1/2 a bushel.
    CBOT September wheat was off 5-3/4 cents at $6.40-3/4
a bushel. The contract bottomed out at $6.40-1/2, just 1/2 cent
above the weekly low hit on Monday.
    U.S. wheat was not even offered in the latest tender by
Egypt because it was too expensive compared with supplies from
other countries. Egypt, the largest importer of the grain,
bought 295,000 tonnes of Russian, Ukrainian and Romanian wheat
for October shipment in a deal announced on Wednesday.
    "The U.S. and west Europe does not look competitive in the
key Egyptian wheat market and prices will have to move down
sharply if more business is to be expected in the Middle East
against tough Russian and Ukrainian competition," a trader said.
    The grains complex was also undermined by a stronger dollar,
which makes U.S. grains more expensive in export markets,
coupled with weaker oil prices.
 Prices at 10:40 a.m. CDT (1540 GMT)                          
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  494.50    -2.75  -0.6%  -29.2%
 CBOT soy                  1364.00    14.25   1.0%   -3.9%
 CBOT meal                  471.30     8.00   1.7%   12.1%
 CBOT soyoil                 43.75    -0.56  -1.3%  -11.0%
 CBOT wheat                 634.00    -6.00  -0.9%  -18.5%
 CBOT rice                 1597.00   -64.00  -3.9%    7.5%
 EU wheat                   188.00    -1.25  -0.7%  -24.9%
 US crude                   109.30     -0.8  -0.7%   19.0%
 Dow Jones                  14,905       81   0.5%   13.7%
 Gold                      1406.40   -11.24  -0.8%  -16.0%
 Euro/dollar                1.3229  -0.0109  -0.8%    0.3%
 Dollar Index              82.0110   0.5800   0.7%    2.8%
 Baltic Freight               1136      -10  -0.9%   62.5%
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

 (Additional reporting by Naveen Thukral in Singapore and
Michael Hogan in Hamburg; Editing by Marguerita Choy)

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