May 1, 2014 / 3:53 AM / 6 years ago

GRAINS-Wheat extends rally into 8th session on yield damage

* U.S. crop tour finds wheat yields well below average
    * July wheat contract records longest ever rally
    * Corn flat, soybeans edge lower

    By Colin Packham
    SYDNEY, May 1 (Reuters) - Chicago wheat futures rose for an
eighth consecutive session on Thursday, trading near a five-week
high, as a widely watched U.S. crop tour confirmed widespread
damage to yields from  prolonged dry weather.
    Corn shrugged off pressure from forecasts for good planting
weather to stand little changed, while soybeans fell for a
second straight session.
    Chicago Board of Trade July wheat futures rose 0.31
percent to $7.23-3/4 a bushel, adding to its 0.7 percent rise 
in the previous session, when the grain hit a five-week high of
7.24-3/4 a bushel.
    Wheat's rally continued as the Wheat Quality Council crop
tour continued to show yields below historical averages.
    "It just keeps getting worse... the Wheat Quality Council
crop tour's findings are confirming that the yields are well
down and the market is responding," said Andrew Woodhouse,
grains analyst at Advance Trading Australasia.
    Crop scouts on the second day of an annual three-day tour of
Kansas projected an average yield for hard red winter wheat in
the southwestern portion of the state at 30.8 bushels per acre,
down from 37.1 bushels a year ago.
    The tour's five-year average for the same area is 38.8
bushels per acre.
    On Wednesday, the yield prospects for winter wheat in
northern Kansas were seen at the worst in more than a decade
following months of drought, a frigid winter and a mid-April
freeze, scouts said. 
    July corn futures were unchanged at $5.19 a bushel,
having closed down 0.48 percent on Wednesday.
    Corn was stable despite forecasts for better planting
weather across the U.S. Corn Belt.
    Warmer and drier conditions were forecast beginning this
weekend in the southern and central U.S. Corn Belt, which should
provide farmers an opportunity to catch up on spring seedings
that were off to a slow start, the Commodity Weather Group said
in a note to clients.
    Corn was also under pressure from a U.S. Energy Information
Administration report on Wednesday showing the ethanol stockpile
at the highest since July. 
    July soybeans fell 0.23 percent to $15.09-1/4 a
bushel, having closed down 0.3 percent in the previous session.
        
  Grains prices at  0323 GMT
  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     723.75     2.25  +0.31%    +1.01%     696.45   70
  CBOT corn      519.00     0.00  +0.00%    -0.48%     504.18   66
  CBOT soy      1509.25    -3.50  -0.23%    -0.53%    1465.03   67
  CBOT rice      $15.56    $0.00  +0.00%    +0.10%     $15.53   66
  WTI crude      $99.68   -$0.06  -0.06%    -1.58%    $101.50   30
  Currencies                                                
  Euro/dlr       $1.387   $0.000  +0.02%    +0.42%
  USD/AUD         0.929    0.000  +0.02%    +0.18%
  Most active contracts
  Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
  RSI 14, exponential
 
 (Editing by Ed Davies)
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