Wheat falls on sluggish U.S. export pace; soybeans turn up

(Recasts throughout; updates prices, adds quotes; changes
byline, dateline, previous LONDON)
By Julie Ingwersen
CHICAGO, Nov 9 (Reuters) - U.S. wheat futures fell to a
one-week low on Friday on concerns about export demand and a
strengthening dollar, analysts said.
Corn followed wheat lower on technical selling, but soybeans
turned higher on firming U.S. cash markets as well as optimism
about U.S.-China talks later this month.
Chicago Board of Trade (CBOT) December wheat futures
settled down 5-3/4 cents at $5.02 per bushel after dipping to
$5.00-3/4, the contract's lowest since Nov. 1.
CBOT December corn ended down 3-3/4 cents at $3.69-3/4
a bushel while January soybeans finished up 7-3/4 cents at
$8.86-3/4 a bushel.
Wheat fell on concerns that U.S. wheat sales are falling
short of the U.S. Department of Agriculture's (USDA) forecast
for exports in the 2018-19 marketing year to reach 1.025 billion
bushels, an increase from 901 million bushels a year earlier.
Export commitments so far this year are lagging last year's
pace.
Russia, the world's top wheat supplier, continues to sell
grain at competitive prices.
Meanwhile, the dollar index reached a one-week high
on Friday and was nearing a 16-month peak, making U.S. grains
less attractive to holders of other currencies.
"The function of the market is going to be to keep U.S.
wheat price-competitive. We're getting there; we just can't run
away on the futures prices too much or we will run away from the
demand," said Joe Nussmeier, broker at Frontier Futures.
Soybeans firmed, drawing support from firm cash markets.
Cash basis values for soybeans at the U.S. Gulf and the
Midwest interior have firmed this week as the U.S. harvest winds
down and farmers put their crop into storage.
"Farmers are locking their bins up and holding out for
higher prices," said Terry Reilly, senior analyst with Futures
International in Chicago.
Analysts also noted prospects for progress in the U.S. trade
dispute with top global soy buyer China. U.S. President Donald
Trump is due to meet with China President Xi Jinping in Buenos
Aires, Argentina, at the end of November on the sidelines of a
Group of 20 summit to discuss a possible way out of their
deepening trade war.
"Traders are getting hopeful that at least a preliminary
deal will be struck around the time of the G20 summit," Reilly
said.
The U.S. soybean crop will be smaller than expected, but
stocks are forecast to rise sharply as the trade conflict with
China weighs heavily on exports, the USDA said Thursday.

For the week, CBOT December wheat fell 6-3/4 cents or
1.3 percent, its fourth weekly decline in the last five weeks.
January soybeans fell 1 cent on the week while December
corn fell 1-1/2 cents, or 0.4 percent, ending a two-week
advance.

CBOT settlement prices:
Last Net Pct Volume
change change
CBOT wheat WZ8 502.00 -5.75 -1.1 86759
CBOT corn CZ8 369.75 -3.75 -1.0 181062
CBOT soybeans SF9 886.75 7.75 0.9 82538
CBOT soymeal SMZ8 305.60 -0.50 -0.2 38541
CBOT soyoil BOZ8 27.62 -0.40 -1.4 88058
NOTE: CBOT December wheat and corn and January soybeans
shown in cents per bushel, December soymeal in dollars per short
ton and December soyoil in cents per lb.

(Additional reporting by Nigel Hunt in London and Naveen
Thukral in Singapore; editing by David Goodman and G Crosse)


First Published: 2018-11-09 00:21:09
Updated 2018-11-09 23:25:07


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