GRAINS-Soybeans up for third session on strong U.S. demand; wheat rises
SINGAPORE, Oct 18 (Reuters) – Chicago soybean futures gained more ground on Wednesday, with prices trading close to the previous session’s highest in more than two weeks, as strong U.S. demand underpinned the market.
Wheat rose for the first time in three sessions on bargain buying, although ample supplies from the Black Sea region limited the gains.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.4% to $13.02-1/4 a bushel, as of 0012 GMT, not far from Tuesday’s highest since Sept. 29 at $13.04 a bushel.
* Wheat Wv1 gained 0.6% at $5.73-3/4 a bushel and corn Cv1 rose 0.1% to $4.89-1/4 a bushel.
* Industry data released on Monday showed that monthly U.S. soybean crush at its highest-ever level for September, and end-of-month soyoil stocks at their lowest in nearly nine years.
* For wheat, rising exports from Russia, the world’s biggest shipper, continue to weigh on prices.
* Indian wheat prices surged to an eight-month high on Tuesday, propelled by strong demand for big festivals, limited supplies and as import duty makes overseas buying unfeasible for domestic flour mills.
* The increasing prices may prompt the government to release more stocks from inventories and eliminate import duties on the cereal to bolster supplies and control prices ahead of important state assembly elections and a general election next year. Rising wheat prices could contribute to food inflation.
* Commodity funds were net sellers of CBOT wheat, corn and soyoil futures contracts on Tuesday and net buyers of soybean and soymeal futures, traders said. COMFUND/CBT
MARKET NEWS
* The Nasdaq dipped and benchmark U.S. Treasury yields surged on Tuesday as robust economic data and strong third-quarter earnings suggested the Federal Reserve may keep policy tight for longer than expected.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY Sept
0200 China Retail Sales YY Sept
0200 China GDP YY Q3
0200 China Unemp Rate Urban Area Sept
0600 UK Core CPI YY Sept
0600 UK CPI YY Sept
0900 EU HICP Final MM, YY Sept
1230 US Housing Starts Number Sept
1800 US Federal Reserve issues the Beige Book
(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
