October 18, 2019 / 10:23 PM / 7 months ago

GRAINS-Wheat hits 3-month high on signs of tightening global supplies

 (Updates prices, adds quotes; changes byline and dateline,
    By Julie Ingwersen
    CHICAGO, Oct 18 (Reuters) - Chicago wheat futures touched a
three-month high on Friday, buoyed by rising cash prices and
signs of tightening global supplies, analysts said.
    Soybean futures rose on worries about the size of the U.S.
harvest while corn fell on disappointing weekly U.S. export
    At the Chicago Board of Trade, December soft red winter
wheat futures ended up 6-3/4 cents at $5.32-1/4 per bushel
after reaching $5.32-3/4, its highest since July 15. For the
week, the contract rose 24-1/4 cents a bushel or 4.8%, its
seventh straight weekly advance.
    Wheat futures have drawn support as worsening crop prospects
in southern hemisphere exporters Argentina and Australia, as
well as weather-hampered spring wheat harvests in North America,
have shifted attention away from large global stocks.
    Australia's wheat production this year is expected to drop
to 15.5 million tonnes, National Australia Bank said as it cut
its forecast to well below recent market estimates of around 19
million tonnes.
    In Argentina, recent rains have not been strong enough to
help wheat fields after weeks of dryness, the Buenos Aires
Grains Exchange said on Thursday.
    At the same time, Saudi Arabia tendered to buy wheat this
week, and Egypt bought 405,000 tonnes of Russian, French and
Ukrainian wheat at an international tender at prices that were
higher than what it paid a week earlier.
    "The Egyptian tender this week was nearly $9 to $10 (per
tonne) above the previous week. Russian (cash wheat) values are
up; they keep talking a big crop, but it seems like their
internal prices are going up," said Matt Connelly, analyst with
the Hightower Report in Chicago.
    CBOT November soybeans ended up 2-1/2 cents at $9.34 a
bushel while December corn settled down 3-3/4 cents at
$3.91 a bushel.
    Soybeans drew support from strong weekly export sales data
along with worries about U.S. yields, particularly in light of
recent snowfall in Minnesota and North Dakota. The U.S.
Department of Agriculture (USDA) is scheduled to release updated
crop monthly crop estimates on Nov. 8.
    In its weekly export sales report, the USDA put export sales
of U.S. soybeans in the week to Oct. 10 at just over 1.6 million
tonnes, at the top end of trade expectations.

    For corn, the USDA's export sales tally was 368,500 tonnes,
below the lowest in a range of trade expectations.
    "We keep falling further behind our sales pace in corn,"
Connelly said.
    CBOT settlement prices:  
                                  Net      Pct  Volume
                         Last  change   change        
 CBOT wheat     WZ9    532.25    6.75      1.3   52046
 CBOT corn      CZ9    391.00   -3.75     -0.9  110414
 CBOT soybeans  SX9    934.00    2.50      0.3  109778
 CBOT soymeal   SMZ9   308.50    1.70      0.6   33054
 CBOT soyoil    BOZ9    30.36   -0.03     -0.1   42717
    NOTE: CBOT December wheat and corn and November soybeans
shown in cents per bushel, December soymeal in dollars per short
ton and soyoil in cents per pound.

 (Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Subhranshu Sahu, David Evans
and Tom Brown)
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