MARKET DEVELOPMENT
GRAINS-Soybeans Extend Run to Touch Six-month High on Argentina Rains
GRAINS-Soybeans Extend Run to Touch Six-month High on Argentina Rains
* Excessive moisture in Argentina's crop-belt to hit yields
* Reduced USDA estimates for U.S. supply also buoy soybeans
* Corn and wheat steady, helped by easing dollar
(Updates with European trading, changes byline/dateline)
17/01/2017 (Reuters) - Chicago soybean futures rose for a third consecutive session on Tuesday to touch a six-month high as heavy rains in Argentina's key growing belt raised concerns over yield losses and added to support from reduced estimates of U.S. soybean supply.
Corn and wheat edged higher, helped by the soybean rally and an easing in the dollar, which makes U.S. commodities more attractive to overseas buyers.
Chicago futures were resuming trading after Monday's holiday closure in the United States and investors reacted to news of a weekend downpour in Argentina that flooded some soybean zones.
The Chicago Board of Trade's most-active soybean contract was up 1.6 percent at $10.63 a bushel by 1116 GMT, having earlier touched its highest since mid-July at $10.66-1/4.
CBOT corn rose 0.8 percent to $3.61-1/2 a bushel, its highest since Jan. 6, while wheat added 0.2 percent to $4.27.
Soybean planting in Argentina, the world's third-largest exporter of the oilseed, had already been disrupted by wet conditions in recent weeks and the latest showers were threatening to damage young crops.
"If you continue to see adverse weather in Argentina, there are going to be question marks on how that crop is going to shape up," said Phin Ziebell, agribusiness economist at National Australia Bank.
The latest weather worries in Argentina came after the U.S. Department of Agriculture (USDA) trimmed its estimates for 2016/17 U.S. soybean yields, production and ending stocks by more than expected last Thursday.
"The USDA has at last provided a backdoor entry to soybean bulls while damaging floods in Argentina are likely to drive bulls to march ahead," Rajesh Singla, head of agriculture research at Societe Generale, said in a note.
Prices of soybeans, wheat and corn have all been curbed by swelling global supplies after a run of big harvests around the world, but with attention turning to the next harvest cycle the market has been sensitive to potential production risks.
Wheat was continuing to draw support from a smaller than expected estimate for U.S. winter wheat sowing in last Thursday's USDA crop data, with the agency pegging acreage at a lowest in more than a century.
Wheat traders were also monitoring a severe cold spell in Europe, the second this month, though snow cover was expected to limit risks.
Prices at 1116 GMT
Last Change Pct End Ytd Pct
Move 2016 Move
CBOT wheat 427.00 1.00 0.23 408.00 4.66
CBOT corn 361.50 3.00 0.84 352.00 2.70
CBOT soy 1063.00 16.75 1.60 1004.00 5.88
Paris MAT wheat Mar 170.00 0.50 0.29 168.00 1.19
Paris CME wheat Mar 174.25 0.25 0.14 175.00 -0.43
Paris maize Jan 168.25 0.75 0.45 166.00 1.36
Paris rape Feb 418.75 2.00 0.48 408.50 2.51
WTI crude oil 53.07 0.70 1.34 53.72 -1.21
Euro/dlr 1.07 0.01 0.87
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.
* Reduced USDA estimates for U.S. supply also buoy soybeans
* Corn and wheat steady, helped by easing dollar
(Updates with European trading, changes byline/dateline)
17/01/2017 (Reuters) - Chicago soybean futures rose for a third consecutive session on Tuesday to touch a six-month high as heavy rains in Argentina's key growing belt raised concerns over yield losses and added to support from reduced estimates of U.S. soybean supply.
Corn and wheat edged higher, helped by the soybean rally and an easing in the dollar, which makes U.S. commodities more attractive to overseas buyers.
Chicago futures were resuming trading after Monday's holiday closure in the United States and investors reacted to news of a weekend downpour in Argentina that flooded some soybean zones.
The Chicago Board of Trade's most-active soybean contract was up 1.6 percent at $10.63 a bushel by 1116 GMT, having earlier touched its highest since mid-July at $10.66-1/4.
CBOT corn rose 0.8 percent to $3.61-1/2 a bushel, its highest since Jan. 6, while wheat added 0.2 percent to $4.27.
Soybean planting in Argentina, the world's third-largest exporter of the oilseed, had already been disrupted by wet conditions in recent weeks and the latest showers were threatening to damage young crops.
"If you continue to see adverse weather in Argentina, there are going to be question marks on how that crop is going to shape up," said Phin Ziebell, agribusiness economist at National Australia Bank.
The latest weather worries in Argentina came after the U.S. Department of Agriculture (USDA) trimmed its estimates for 2016/17 U.S. soybean yields, production and ending stocks by more than expected last Thursday.
"The USDA has at last provided a backdoor entry to soybean bulls while damaging floods in Argentina are likely to drive bulls to march ahead," Rajesh Singla, head of agriculture research at Societe Generale, said in a note.
Prices of soybeans, wheat and corn have all been curbed by swelling global supplies after a run of big harvests around the world, but with attention turning to the next harvest cycle the market has been sensitive to potential production risks.
Wheat was continuing to draw support from a smaller than expected estimate for U.S. winter wheat sowing in last Thursday's USDA crop data, with the agency pegging acreage at a lowest in more than a century.
Wheat traders were also monitoring a severe cold spell in Europe, the second this month, though snow cover was expected to limit risks.
Prices at 1116 GMT
Last Change Pct End Ytd Pct
Move 2016 Move
CBOT wheat 427.00 1.00 0.23 408.00 4.66
CBOT corn 361.50 3.00 0.84 352.00 2.70
CBOT soy 1063.00 16.75 1.60 1004.00 5.88
Paris MAT wheat Mar 170.00 0.50 0.29 168.00 1.19
Paris CME wheat Mar 174.25 0.25 0.14 175.00 -0.43
Paris maize Jan 168.25 0.75 0.45 166.00 1.36
Paris rape Feb 418.75 2.00 0.48 408.50 2.51
WTI crude oil 53.07 0.70 1.34 53.72 -1.21
Euro/dlr 1.07 0.01 0.87
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.