October 10, 2018 / 1:11 AM / 11 days ago

GRAINS-Wheat extends gains as heavy rains raise fears of localised flooding

    SYDNEY, Oct 10 (Reuters) - U.S. wheat futures edged higher
for a second session on Wednesday as recent heavy rains across
key producing regions in the U.S. Plains stoked fears that some
paddocks have been flooded.
         
    FUNDAMENTALS  
    * The most active wheat futures on the Chicago Board of
Trade were up 0.4 percent at $5.17-1/4 a bushel by 0043
GMT, having closed up 0.2 percent on Tuesday.
    * The most active soybean futures were little changed
at $8.62-1/2 a bushel, having closed down 0.8 percent on
Tuesday.
    * The most active corn futures rose 0.1 percent to
$3.64-1/2 a bushel, having closed down 0.5 percent in the
previous session.
    * Recent rains swamped some newly seeded winter wheat fields
in parts of the Plains Wheat Belt, raising fears of some crop
damage.
    * The U.S. Department of Agriculture said 32 percent of the
soybean has been harvested, behind market expectations.

    * The USDA said 34 percent of the corn crop has been
harvested, matching market expectations. 
    * Soybeans under pressure after U.S. President Donald Trump
on Tuesday reiterated threats to impose tariffs on $267 billion
worth of additional Chinese imports if Beijing retaliates for
recent U.S. tariff actions.
    * USDA to issue late supply and demand report for October on
Thursday.
    * Analysts polled ahead of Thursday's report, on average,
expect the USDA to increase its U.S. corn and soybean yield and
production forecasts as well as raise its U.S. and world grain
and soybean stocks projections.
         
    MARKET NEWS  
    * The dollar dipped on Tuesday due to a fall in U.S. bond
yields after touching a seven-week peak against a basket of
currencies, as sterling rose following a report that rekindled
hopes that Britain and the European Union are on the brink of a
Brexit deal.  
    * Oil prices rose about one percent on Tuesday on growing
evidence of falling Iranian crude exports before the imposition
of new U.S. sanctions, as well as a partial production shutdown
in the Gulf of Mexico because of Hurricane Michael.  
    * The Dow and S&P 500 ended slightly lower on Tuesday as
investors, worried about global growth prospects, fled from
materials and industrials stocks but falling bond yields kept
declines in check in the three major indexes.  
    
    DATA AHEAD (GMT)
0645  France               Industrial output             Aug
0830  UK                   GDP estimate                  Aug
0830  UK                   Industrial output             Aug
        
 Grains prices at  0043 GMT
 Contract       Last    Change    Pct chg   Two-day chg     MA 30
 CBOT wheat   517.25      2.25     +0.44%        +0.63%    518.81
 CBOT corn    364.75      0.25     +0.07%        -0.48%    360.60
 CBOT soy     862.50     -0.50     -0.06%        -0.83%    845.61
 CBOT rice     10.93    -$0.02     -0.18%        +0.51%    $10.46
 WTI crude     74.77    -$0.19     -0.25%        +0.65%    $71.36
 Currencies                                                      
 Euro/dlr     $1.150    $0.001     +0.09%        +0.08%          
 USD/AUD      0.7114     0.001     +0.17%        +0.54%          
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Richard Pullin)
  
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