April 13, 2018 / 9:57 PM / 3 months ago

GRAINS-Wheat at one-week low on wetter U.S. outlooks; corn, soy sag

 (Updates with closing U.S. prices)
    By Julie Ingwersen
    CHICAGO, April 13 (Reuters) - U.S. wheat futures fell on
Friday to a one-week low, pressured by forecasts for much-needed
rain late next week in the southern Plains winter wheat belt,
analysts said.
    Corn followed wheat lower amid a lack of fresh supportive
news, and soybeans turned down, erasing early advances, as
nervous traders booked profits ahead of the weekend.
    Chicago Board of Trade May wheat settled down 8-1/2
cents at $4.72-1/2 per bushel, after dipping to $4.69-1/2, its
lowest since April 6. May corn ended down 2-1/2 cents at
$3.86-1/4 a bushel and May soybeans fell 6-1/2 cents at
$10.54-1/4 a bushel.
    Wheat slid for a third straight session as traders assessed
prospects for showers late next week in the southern Plains,
where the region's hard red winter wheat is developing amid
drought conditions.
    Updated forecast models shifted the track of a storm
expected next Friday slightly to the north, the Commodity
Weather Group said in a client note, but it could still generate
beneficial moisture.
    "The story is, you've got some moisture coming in. It's not
going to break the drought, but it doesn't take a lot of water
to get a crop. And export sales were not good," said Alan
Brugler, president of Nebraska-based Brugler Marketing.
    The U.S. Department of Agriculture (USDA) on Thursday
reported export sales for old and new crop U.S. wheat in the
latest week at 188,700 tonnes, below trade expectations.

    This came after the USDA on Tuesday raised its outlook for
world wheat stocks to an all-time high.
    Soybeans turned lower on profit-taking after the spot May
contract touched $10.67-1/4, its highest in a month,
buoyed by demand from exporters and domestic crushers and
worries about the drought-hit Argentine soy harvest.
    "I think it's just profit-taking. The fundamental stories
are still fairly bullish, with the shrinking South American
crop," Brugler said.
    Argentina, the world's No. 3 soybean producer, has struggled
with a drought that has slashed its crop. However, yield
prospects are bright in neighboring Paraguay and Brazil.
    Paraguay will produce just over 10 million tonnes of
soybeans in 2017/18, slightly less than a year earlier, the
national export chamber CAPECO said on Thursday.
    "These yields will go a long way in offsetting the losses
that are being reported in Argentina," Karl Setzer, analyst with
Iowa-based MaxYield Cooperative, said in a note to clients.
    For the week, CBOT May soybeans rose 20-1/2 cents per
bushel, or about 2 percent. May corn fell 2-1/4 cents or
0.6 percent, and CBOT May wheat was nearly unchanged,
ending the week up 1/4 cent from its close on April 6.
    
    CBOT settlement prices:      
                                  Net     Pct  Volume
                         Last  change  change        
 CBOT wheat     WK8    472.50   -8.50    -1.8   62655
 CBOT corn      CK8    386.25   -2.50    -0.6  215301
 CBOT soybeans  SK8   1054.25   -6.50    -0.6  104023
 CBOT soymeal   SMK8   382.80   -0.60    -0.2   37912
 CBOT soyoil    BOK8    31.48   -0.15    -0.5   34186
    NOTE: CBOT May wheat, corn and soybeans shown in cents per
bushel, soymeal in dollars per short ton and soyoil in cents per
lb.
    

 (Additional reporting by Gus Trompiz in Paris and Colin Packham
in Sydney; Editing by David Evans and Dan Grebler)
  
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