GRAINS-U.S. wheat bounces from 7-month low; corn, soy climb
* U.S. weather conditions to determine wheat prices
* Snow, rains help improve wheat output prospects
* Corn, soybean could remain under pressure
NEW DELHI, Feb 13 (Reuters) - Chicago wheat prices rose due to bargain hunting on Wednesday, bouncing a day after the contract touched a seven-month low after rains and snow helped improve harvest prospects. Friday's USDA estimates also supported wheat. The United States Department of Agriculture last week forecast U.S. wheat stocks will shrink to 691 million bushels at the end of he marketing year on May 31, down from its previous forecast for 716 million bushels and the smallest in four years.
Corn and soybean rose despite expectations of large harvests in South America. The USDA has already lifted its forecast for end-of-season stocks for both corn and soybean. "Wheat has risen because of technical reasons and to a greater extent that's true for corn and soybean as well," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures. Chicago Board of Trade March wheat had gained 0.1 percent to $7.32-3/4 a bushel by 0453 GMT, having shed 9-1/2 cents, or 1.3 percent, in the session before. It had dipped as low as $7.25-1/2 in that session. March corn rose 0.11 percent to $6.97 a bushel, after closing down 0.9 percent a day earlier, registering its eighth straight loss, its longest losing streak in 5-1/2 years. March soybeans gained 0.23 percent to $14.24 a bushel. They settled in the previous session at $14.20-3/4 a bushel, giving up earlier gains and touching the lowest nearby price since Jan. 24. Weather will play a key role in determining wheat prices, Yang said. "All of us will be watching the weather pattern in the U.S. to gauge the impact of dry winter conditions on hard red winter wheat," he said. Snow and rain showers that lashed the U.S. Southwest Plains will help but not eliminate the harmful impact on wheat production from the worst drought in more than 50 years, U.S. agricultural meteorologist Don Keeney of MDA EarthSat Weather said. But corn and soybean could remain under pressure due to higher supplies and relatively better weather conditions in South America, he said. Grains prices at 0453 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 732.75 0.75 +0.10% -1.18% 763.30 22 CBOT corn 697.00 0.75 +0.11% -0.75% 714.83 25 CBOT soy 1424.00 3.25 +0.23% -0.52% 1432.01 33CBOT rice $15.70 $0.04 +0.26% -0.92% $15.46 48WTI crude $97.62 $0.11 +0.11% +0.61% $95.41 65
Currencies
Euro/dlr $1.345 $0.009 +0.68% +0.64%USD/AUD 1.035 0.004 +0.37% +0.36%
Most active contracts
Wheat, corn and soy US cents/bushel.Rice:USD per hundredweight
RSI 14, exponential
(Editing by Muralikumar Anantharaman)