November 7, 2014 / 11:39 AM / 5 years ago

GRAINS- US wheat posts first weekly loss since Sept; soy rallies late

* Traders stake out positions ahead of monthly crop report
    * Corn, wheat, soybeans post weekly losses

 (Updates with closing prices, adds analyst's comment)
    By Mark Weinraub
    CHICAGO, Nov 7 (Reuters) - Chicago Board of Trade wheat
futures dropped for the fourth day in a row on Friday as U.S.
exporters struggled to compete in an export market laden with
supplies from around the globe, traders said.
    Corn prices also fell, with investors staking out positions
ahead of a U.S. Agriculture Department report that was expected
to boost production estimates from the ongoing harvest in the
Midwest. 
    But soybeans rose on a late round of buying and strong
export demand. The strong demand also supported cash market
values for soy. 
    Wheat futures shed 3.3 percent this week, snapping a streak
of five straight weekly gains.
    "Weak (wheat) exports continue to dog rally attempts, with
buyers in no mood to chase the market higher," Bryce Knorr,
senior editor of Farm Futures Magazine, said in a note. "Until
one of the world's growing regions suffers a disaster there's
little reason for prices to rally much."
    CBOT soft red winter wheat for December delivery ended
down 5-3/4 cents at $5.14-1/2 a bushel. The contract bounced off
its lows after finding support at its 50-day moving average.
    "U.S. wheat exports remain no more than routine, and with a
firmer dollar, this is deemed negative to U.S. exports and
future price," David Sheppard, managing director of UK merchant
Gleadell, said in a market note.
    Iraq's state grains board bought 200,000 tonnes of hard
wheat from Canada and Australia in a tender, European traders
said on Friday. Traders said earlier in the week that U.S. wheat
was priced about $20 a tonne higher than Canada's offer.
 
    CBOT January soybeans gained 8-3/4 cents to close at
$10.36-3/4 a bushel, while December corn dropped 3-3/4
cents to $3.67-1/2 a bushel.
    Robust demand from overseas buyers, coupled with slow
country movement as farmers chose to store newly harvested crops
rather than book new sales to processors, supported the gains in
soybeans. 
    "Our weekly (soy) export shipments this week were huge,"
said Mark Schultz, analyst at Northstar Commodity Investment Co
in Minneapolis. "We better have a pretty good crop or else
things are going to start getting tight once again."
    For the week, soybeans lost 1.0 percent, while corn was 2.5
percent lower.
    Good weather for harvest added weight to the corn market,
with forecasts showing conditions that would allow farmers to
catch up to their typical schedule.
 Name              Last       Pct Change  Net Change  Pvs Close
 CORN DEC4             367.5       -1.01       -3.75     371.25
 SOYBEANS NOV4       1040.25         0.9        9.25       1031
 SOY MEAL DEC4         390.4       -0.33        -1.3      391.7
 SOYBEAN OIL DEC4       32.4        -0.4       -0.13      32.53
 WHEAT SRW DEC4        514.5       -1.11       -5.75     520.25
 ROUGH RICE NOV4       11.87        0.25        0.03      11.84
 M.WHEAT EUR JAN5     169.25       -1.02       -1.75        171
 LIGHT CRUDE DEC4      78.62        0.91        0.71      77.91
 DJ INDU AVERAGE    17547.28       -0.04       -7.19   17554.47
 GOLD                1170.45  #N/A             29.55     1140.9
 BALTIC EXCH DRY        1437        0.07           1       1436
 US DOLLAR INDEX      87.633       -0.43      -0.379     88.012
 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 Nigel
Hunt in London; Editing by Phil Berlowitz; and Peter Galloway)
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