GRAINS-Wheat Steady, Lingers Near One-Week Low on Forecasts for U.S. Rains
(Reuters) – U.S. wheat held steady on Thursday, lingering near a one-week low, as forecasts for crop friendly weather continued to weigh on prices ahead of a widely watched U.S. Department of Agriculture report later in the session.
The most active wheat futures contract on the Chicago Board of Trade was little changed at $4.19 a bushel, having closed down 1.9 percent on Wednesday when prices hit a one-week low of $4.12 a bushel.
The most active soybean futures fell 0.1 percent to $10.10-1/4 a bushel, having closed down 0.2 percent on Wednesday.
The most active corn futures were unchanged at $3.57-1/4 a bushel, having closed down 0.3 percent in the previous session when prices hit a low of $3.52 a bushel – the lowest since Jan. 3.
Wheat pressured by expectations that weekend storms would help recharge soil moisture in Oklahoma and Kansas, where dry conditions have stressed dormant hard red winter wheat crops.
A substantial snow layer has protected Ukrainian and Russian winter crops from severe frosts which came this weekend, analyst and weather forecasters said on Tuesday.
The USDA will release a series of reports on Thursday at 11 a.m. CST (1700 GMT), including U.S. quarterly grain stocks, U.S. annual crop production, U.S. winter wheat seeding and its monthly World Agricultural Supply and Demand Estimates.
China has increased punitive tariffs on imports of a U.S. animal feed ingredient known as distillers’ dried grains (DDGS) from levels first proposed last year, potentially escalating a trade spat between the world’s two largest economies.
MARKET NEWS
* The dollar sagged against the perceived safe-haven yen on
Thursday, after President-elect Donald Trump’s highly-anticipated news conference failed to spell out details on his promises to boost fiscal spending and cut taxes.
* Oil prices were steady early on Thursday after U.S. crude and refined product stocks sent mixed messages to the market, with ongoing uncertainty over OPEC compliance with planned output reductions also in focus.
* U.S. stocks ended higher after a choppy day on Wednesday as energy and technology gains countered a drop in healthcare stocks after President-elect Donald Trump said pharmaceutical companies were “getting away with murder” by charging high prices.
