GRAINS-US wheat down 0.5 pct after 5-day rally; corn, soy ease
SINGAPORE, Aug 16 (Reuters) - U.S. wheat futures fell 0.5
percent on Tuesday, snapping a five-day rising streak as a firm
dollar and weaker crude oil weighed.
Corn and soybeans also dipped as U.S. crop ratings steadied
after rain and cooler temperatures in the Midwest stabilized the
crops, which had been suffering through a dry, hot summer.
"For the time being the crop condition is steady and
forecast this morning not overly worrying which is helping to
alleviate crop concerns," said Brett Cooper, a senior manager of
markets at FCStone Australia.
"The market has pretty much priced in the USDA report and
the yield issues that we have to date, it is looking for
probably confirmation of additional decline in yields to rally
or some other external factors and we don't have any of those
Chicago Board of Trade September wheat fell 0.5
percent to $7.09-1/4 a bushel by 0311 GMT and most actively
traded December corn lost 0.3 percent to $7.17-3/4 a
bushel. November soy fell 0.3 percent to $13.47-3/4 a
A weekly report from the U.S. Department of Agriculture,
issued after the market closed on Monday, rated the corn crop 60
percent good to excellent, unchanged from a week ago and in line
with the average of estimates given by eight analysts.
The average good-to-excellent rating for this time of year
has been 61 percent during the past 10 years. In 2010, USDA
rated the crop 69 percent good to excellent in mid-August.
Soybean ratings were also unchanged at 61 percent good to
excellent, matching analysts' estimates. The 10-year soybean
average for mid-August is 59 percent good to excellent, and USDA
rated the crop 66 percent good to excellent a year ago.
Still, the good-to-excellent ratings for both crops were the
lowest for mid-August in four years, reflecting late planting
and the scorching July that robbed yield potential from corn and
Forecasts called for crop-friendly weather in the U.S.
Corn and soybean crops in the U.S. will benefit from last
week's cooler temperatures and showers, and that pattern should
continue through this week followed by a little warmer weather
next week, an agricultural meteorologist predicted.
Rainfall over the past week and some more showers this week
would help the final stages of corn filling and boost soybean
production prospects since soy plants are near the middle of the
key pod-setting stage of development.
On Monday, the wheat market found support from a large sale
of wheat to Saudi Arabia and drought in the U.S. Plains that was
leading to concerns about seeding the hard red winter wheat crop
to be harvested next year.
Saudi Arabia bought 660,000 tonnes of wheat from Australia,
Europe, Canada and the United States at an average price of $346
per tonne, including cost and freight.
Concerns are emerging about the planting of next year's
winter wheat crop, as soil moisture levels in key growing states
of the southern U.S. Plains jeopardized next year's production
potential. Farmers typically like to start planting in
The agricultural markets were also pressured by declining
crude oil values and a firm U.S. dollar.
Brent crude futures edged lower on Tuesday, after rising
nearly $2 a day earlier, as soft U.S. economic data renewed
fears of weaker oil demand from the world's top oil consumer and
a rebound in the dollar spurred selling.
The dollar index , which measures the strength of the
greenback against a basket of currencies, rose 0.1 percent.
Prices at 0311 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 709.25 -3.25 -0.46% +0.96% 684.91 62
CBOT corn 717.75 -2.25 -0.31% +0.45% 681.72 61
CBOT soy 1347.75 -3.50 -0.26% +0.97% 1357.72 51
CBOT rice $16.99 -$0.06 -0.35% +1.07% $16.56 67
WTI crude $87.46 -$0.42 -0.48% +2.53% $92.69 47
Euro/dlr $1.443 $0.017 +1.19% +1.27%
USD/AUD 1.049 0.012 +1.15% +1.28%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential