Chicago soybean futures fell on Monday with the market on track for a second month of losses, on the prospect for near-record U.S. production adding to all-time high supplies from South America earlier this year. Wheat and corn were also set to drop for a second month as rising global supplies drag down grain prices. Wheat has given up more than 20 percent of its value since the beginning of July, while corn has lost 11 percent during the period and soybeans have fallen 15 percent in two months. “It is the supply story in grain markets,” said Phin Ziebell, agribusiness economist with National Australia Bank. “U.S. weather is looking largely favourable, Black Sea supply is good and we have ample soybean supplies coming from Brazil.” Chicago Board of Trade actively traded November soybeans slid 0.6 percent to $8.80-1/4 a bushel by 0243 GMT, December corn eased 0.1 percent to $3.47-3/4 a bushel and wheat fell 0.2 percent to $4.83 a bushel. Soybeans drew some support on Friday from forecasts of dry weather in parts of the U.S. Midwest but the market could not retain those gains with plentiful supplies flooding the market. Egypt’s state grain buyer booked 55,000 tonnes of Ukrainian wheat in an international tender at around $177 per tonne free-on-board (FOB), one day after buying Russian wheat for roughly $180 a tonne FOB. No U.S. wheat was offered at either tender because prices were seen as uncompetitive. In other news, Canada was storing 43 percent less canola and about one-third less wheat and oats at mid-summer than a year ago, as brisk exports ate away at supplies, according to a Reuters survey. Reuters surveyed 13 traders and analysts ahead of Statistics Canada’s Sept. 3 report on crop stocks as of July 31, 2015, which marks the end of the 2014/15 marketing year. The report gauges how much crop was in the system ahead of the harvest in the world’s No. 6 wheat producer and biggest canola grower. Large speculators raised their net long position in CBOT corn futures in the week to Aug. 25, regulatory data released on Friday showed. The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and switched to a net short position in soybeans.
Grains prices at 0243 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 483.00 -0.75 -0.16% -1.38% 505.79 28 CBOT corn 374.75 -0.25 -0.07% -0.07% 383.84 39 CBOT soy 880.25 -5.25 -0.59% +0.14% 929.58 35 CBOT rice $11.80 -$0.08 -0.72% +1.72% $11.73 53 WTI crude $44.47 -$0.75 -1.66% +4.49% $44.40 61 Currencies Euro/dlr $1.124 $0.006 +0.54% -0.04% USD/AUD 0.713 -0.004 -0.52% -0.42% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Source - http://in.reuters.com/article/2015/08/31/markets-grains-idINL4N1161CL20150831)