×

GRAINS-Soybeans near 2-1/2 month low as Argentina rains weigh on prices

SINGAPORE, Dec 20 (Reuters) - Chicago soybean futures were little changed on Wednesday with the market trading near its lowest since early October on pressure from crop-boosting rains across Argentina's drought-hit farm belt. Wheat edged higher as the market was supported by expectations of improved demand for U.S. wheat which has struggled to win business due to stiff competition from the Black Sea region.

FUNDAMENTALS

* Brazil and Argentina are on track for another year of bumper soybean production as rains ease concerns over dry weather brought by the La Nina weather pattern.

* Rains that fell on Argentina's main farm belt over the weekend brought relief to parched soybean and corn-growing land, meteorologists said on Monday, allowing the planting of crops to resume in most of the affected areas.

* Brazilian farmers are expected to produce 114.57 million tonnes of soybeans in the 2017/18 crop cycle, consultancy Safras & Mercado said on Monday. The figure represents a slight downward adjustment from an October estimate of 114.7 million tonnes, although it would still be an all-time high for Brazil.

* Recent price declines in wheat have attracted fresh export interest in U.S. shipments. U.S. wheat was the cheapest origin grain offered in an Iraqi tender for hard milling wheat.

* Commodity funds were net buyers of Chicago Board of Trade corn and soyoil contracts on Tuesday and net sellers of soybeans, soymeal and wheat, traders said.

MARKET NEWS

* Asian shares fell on Wednesday, taking their cues from Wall Street with investor enthusiasm toward U.S. tax changes ebbing as the long-awaited reform bill wound its way through Congress, while higher U.S. Treasury yields underpinned the dollar.

DATA AHEAD (GMT)

0700 Germany Producer prices Nov 0900 Euro zone Current account Oct 1500 U.S. Existing home sales Nov

Grains prices at 0129 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 420.00 0.50 +0.12% +0.42% 432.78 68 CBOT corn 348.00 0.50 +0.14% +0.14% 353.65 70 CBOT soy 956.50 0.50 +0.05% -1.11% 985.34 24 CBOT rice 11.80 $0.09 +0.73% +0.81% $12.03 46 WTI crude 57.75 $0.19 +0.33% +1.03% $57.09 57

Currencies

Euro/dlr $1.184 $0.001 +0.04% +0.53% USD/AUD 0.7663 0.000 -0.01% +0.03%

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

(Reporting by Naveen Thukral; Editing by Sunil Nair)