May 3, 2018 / 10:30 PM / 2 years ago

GRAINS-Wheat, corn hit multimonth highs; soy stages late rally

 (New throughout; updates prices, adds quotes; changes byline,
dateline, previous PARIS/SINGAPORE)
    By Julie Ingwersen
    CHICAGO, May 3 (Reuters) - U.S. wheat futures climbed to
multimonth highs Thursday on a mix of short-covering and worries
about the size of the hard red winter wheat crop in top producer
Kansas, traders said.
    Soybeans rose, staging a late-session rally that some
traders attributed to optimism about the outcome of U.S. trade
talks with top global soy buyer China. Corn also advanced.
    At the Chicago Board of Trade, July soft red winter wheat
futures ended up 11-1/4 cents at $5.38 a bushel. CBOT July
soybeans settled up 10-1/4 cents at $10.53-1/4 a bushel
and July corn was up 3 cents at $4.08 a bushel.
    Technical buying in CBOT wheat accelerated as the July
contract surpassed Wednesday's top and reached $5.38-1/2 a
bushel, its highest since Aug. 1.
    The market got a lift late in the session as scouts on a
Wheat Quality Council crop tour projected the winter wheat yield
in Kansas, the top U.S. wheat state, at 37.0 bushels per acre.
The scouts pegged Kansas wheat production at 243.3 million
bushels, potentially the smallest crop since 1989, reflecting
the impact of drought. 
    "The tour called Kansas production 243 million bushels,
which puts them a good 30 million bushels less than the trade,"
ED&F Man Capital analyst Charlie Sernatinger said in a client
    K.C. July hard red winter wheat ended up 12-1/2 cents
at $5.67-3/4, its fifth straight higher close, after reaching
$5.68-1/2, its highest since July 21.
    Soybeans advanced after a back-and forth session, turning up
in the final 15 minutes of the session on a mix of technical
buying and optimism about the outcome of U.S. trade talks with
top global soy buyer China.
    "The U.S. trade team started negotiations in China, and make
no mistake about it, this is the driving fundamental for the
moment on beans," Sernatinger wrote.
    CBOT July soyoil rose for a second straight session,
buoyed by stronger-than-expected weekly U.S. export sales and
confirmation that private exporters sold 30,000 tonnes of U.S.
soyoil to Peru.
    July corn hit its highest since Aug. 10 as traders
continued to fixate on dry weather that is stressing second-crop
corn in Brazil. 
    "Rains are expected to remain very limited across the region
this week, with just a few showers expected in northwestern Mato
Grosso. This will allow soil moisture shortages to continue to
expand northward," Radiant Solutions said in a daily crop
weather note.
    Meanwhile, rain in Argentina has slowed the harvest of corn
and soy crops that were slashed by drought earlier in the
    CBOT settlement prices:   
                         Last     Net     Pct    Volume
                               change  change  
 CBOT wheat     WN8    538.00   11.25     2.1     72977
 CBOT corn      CN8    408.00    3.00     0.7    159971
 CBOT soybeans  SN8   1053.25   10.25     1.0    106476
 CBOT soymeal   SMN8   398.60   -2.10    -0.5     45663
 CBOT soyoil    BON8    30.81    0.21     0.7     44255
    NOTE: CBOT July wheat, corn and soybeans shown in cents per
bushel, soymeal in dollars per short ton and soyoil in cents per

 (Reporting by Julie Ingwersen; Editing by Lisa Shumaker)
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