GRAINS-Grain, Soy Prices Edge Up Ahead of Monthly USDA Report

(Agriculture.com) –Wheat prices edged higher on
Thursday as the market remained underpinned by concerns about
dry weather in U.S. hard red winter wheat areas.

Corn and soybean prices were also slightly higher as dealers
awaited the release of the U.S. Department of Agriculture’s
(USDA) monthly supply-demand report, due for release at 1600
GMT.

The most-active wheat contract on the Chicago Board Of
Trade was up 0.7 percent at $5.14 a bushel by 1027 GMT.

The U.S. hard red winter wheat crop in the U.S. Southern
Plains remains in significantly worse condition than last year
despite a marginal recent improvement and the weather in the
next few days is unlikely to improve the outlook.

“Weather forecasters continue to expect a little rainfall in
dry Hard Red Winter wheat regions. The likely rain remains
unlikely to be enough to do anything useful to crops,” said
Commonwealth Bank of Australia analyst Tobin Gorey.

Dealers said the scope for any major rise in prices may,
however, be capped with the USDA’s monthly report expected to
show global supplies remain ample.

Analysts on average estimate 2018/19 world wheat ending
stocks at 269.18 million tonnes, down only slightly from a
record-high 271 million at the end of 2017/18.

“U.S. spring planting progress has been bit slow and we have
had issues with the Hard Red Winter wheat crop, but if you look
globally, it is hard to see supplies getting significantly
lower,” said Phin Ziebell, agribusiness economist, National
Australia Bank.

“It is pretty tough to see any sustained rally in such a
situation.”

September wheat on Paris-based Euronext rose 0.4
percent to 173.75 euros a tonne.

CBOT soybean prices also edged higher, with the most active
contract up 0.4 percent at $10.19-1/2 a bushel.

On average, analysts expect the USDA on Thursday to lower
its forecasts of domestic and global 2017/18 soybean ending
stocks.

Analysts expect little change in the USDA’s forecast for
2017/18 ending stocks for corn from its April figure near 2.18
billion bushels.

CBOT’s most active corn contract was up 0.4 percent at
$4.04-1/4 a bushel.