U.S. wheat up for third day in a row; corn, soy weak
(Updates with closing prices, adds details throughout)
By Mark Weinraub
CHICAGO, May 17 (Reuters) - U.S. wheat futures rose on
Thursday, their third straight day of gains, on worries that
adverse weather will lead to crop shortfalls in key growing
areas around the world, traders said.
Soybean futures fell, pressured by fresh concerns about
exports. Corn futures closed lower on long liquidation by funds
after failing to hold support above key technical points.
The grain markets also were monitoring the progress of trade
talks between the United States and key export customers China
Chicago Board of Trade July soft red winter wheat futures
settled up 3-1/4 cents at $4.97-1/2 a bushel.
"There's still plenty of concern over how this winter wheat
crop will wind up, despite stronger-than-expected production
estimates and rising ratings," Matt Zeller, director of market
information at INTL FCStone said in a note to clients. "Dryness
is creeping in to crops for major producers/exporters Australia
and Russia, adding to at least a minor bullish story heading to
Australian farmers are planting wheat in some of the driest
soils in years, following a severe drought that cut 2017/18
output in the world's fourth-largest exporter to the lowest in a
"There is some support for the wheat market at current
levels because of a drought in the U.S. southern Plains. The
USDA is showing some improvement in crop rating but there will
be yield losses," said one India-based agricultural commodities
CBOT July soybean futures were down 4-3/4 cents at
$9.95 a bushel.
The soybean market is focused on the outcome of trade talks
between the United States and China. Chinese demands for U.S.
shipments have taken a hit since Beijing proposed import duties
The United States and China launch a second round of trade
talks on Thursday to try to avert a damaging tariff war, with
the Trump administration demanding a $200 billion cut in China's
U.S. trade surplus and greater protections for intellectual
President Donald Trump said on Thursday that China and other
countries had become "very spoiled" on trade.
The U.S. Agriculture Department on Thursday morning said
that soybean export sales totalled 506,600 tonnes in the latest
week, near the low end of forecasts that ranged from 400,000 to
1 million tonnes.
CBOT July corn futures closed 4 cents lower at
$3.95-1/4 a bushel.
Corn firmed early but turned lower after failing to hold
support above its 10-day moving average.
(Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore
Editing by Tom Brown and Cynthia Osterman)
First Published: 2018-05-17 04:17:11
Updated 2018-05-17 21:30:07
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