×

GRAINS-Wheat falls 1 pct, but still set for fifth weekly gain

* Wheat prices retreat from two-year high

* Corn on track for weekly gain of 5 pct

* Soybeans rally, on course to advance 5 pct over week

SYDNEY, July 7 (Reuters) - U.S. wheat fell 1 percent on Friday as prices continued to retreat from a two-year high touched earlier in the week, though the commodity was still on track for its fifth straight weekly gain. Corn edged lower, but was set to record weekly gains of more than 5 percent, while soybean prices edged higher. The most active wheat futures on the Chicago Board of Trade fell 1 percent to $5.33-3/4 a bushel, after closing down 3.8 percent on Thursday. Wheat hit a two-year high earlier in the week at $5.74-1/2 a bushel. Despite edging lower, wheat is still up nearly 1.5 percent for the week, the fifth straight weekly rally. Prices have soared more than 24 percent over that five-week period. "Generally a reversal of this scale is required to put a full stop on powerful moves like the rally of the past week or so," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank. The price retreat comes despite further forecasts for hot dry weather in key U.S. wheat-growing regions that have sparked worries about widespread production losses. The unfavorable weather threatens to stoke further downgrades to the quality of U.S. supplies. The U.S. Department of Agriculture said on Wednesday afternoon that good-to-excellent ratings for U.S. spring wheat dropped 3 percentage points to 37 percent in the latest week, slightly below market expectations. The most active soybean futures rose 0.23 percent to $10.01-1/2 a bushel, after closing up 0.5 percent in the previous session. Soybeans are up nearly 5 percent for the week, extending two-week gains to nearly 10 percent. The most active corn futures fell 0.4 percent to $4.01-1/4 a bushel, after closing down 0.3 percent in the previous session. Corn is up more than 5 percent for the week, the second weekly gain in a row. Private analytics firm Informa Economics on Thursday projected U.S. 2017 corn production at 14.166 billion bushels based on an average yield of 169.7 bushels per acre, trade sources said. That compares with USDA forecasts of 14.065 billion bushels and 170.7 bushels per acre.

Grains prices at 0419 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 533.75 -5.25 -0.97% -4.69% 476.67 65 CBOT corn 401.25 -1.50 -0.37% -0.74% 395.78 65 CBOT soy 1001.50 2.25 +0.23% +0.73% 941.84 83 CBOT rice 11.90 -$0.03 -0.21% -0.04% $11.60 68 WTI crude 44.92 -$0.60 -1.32% -0.47% $45.79 47

Currencies

Euro/dlr $1.142 $0.000 -0.04% +0.58% USD/AUD 0.7586 0.000 +0.01% -0.18%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; Editing by Joseph Radford)