Soybeans firm, extend two-day gains to nearly 1 pct

June 16th, 2014

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Category: Grains, Oilseeds

(Reuters) – U.S. soybean futures rose on Monday, extending two-day gains to nearly 1 percent as the oilseed rebounded from a 2-1/2 month low, although traders remain cautious ahead of data on U.S. demand later in the day.

FUNDAMENTALS

* Chicago Board Of Trade front-month soybeans rose 0.2 percent to $14.28 a bushel, having firmed 0.7 percent on Friday.

* Spot corn fell 0.2 percent to $4.46-1/4 a bushel, having gained 0.7 percent in the previous session.

* Front-month wheat rose 0.5 percent to $5.88-3/4 a bushel, having closed up 0.1 percent on Friday.

* Egypt, the world’s biggest wheat importer, has bought around 3.65 million tonnes of domestic wheat so far and will stop buying local supplies on June 20, the Supplies Ministry said on Sunday.

* The National Oilseed Processors Association (NOPA) on Monday is expected to estimate the U.S. soybean crush in May at 126.984 million bushels, according to a Reuters poll.

* The U.S. Department of Agriculture on Thursday cut its forecast for U.S. 2013/14 end-stocks to 125 million bushels, a 10-year low.

* Closely followed analytical firm Informa Economics trimmed its 2014 U.S. soybean acreage forecast and left corn plantings unchanged from its previous estimate.

* Australian farmers are holding back new-crop wheat sales on fears an El Nino weather pattern will slash yields, though their cautious approach means they risk losing sales to aggressive European rivals in Asian markets.

MARKET NEWS

*  The dollar edged up against a basket of currencies in early trade on Monday, drawing mild support as geopolitical worries hung over the markets, but was by potentially decisive events such as the Federal Reserve meeting midweek.

* Crude oil prices rose to new nine-month highs on Friday as concerns persisted that an insurgency in Iraq could disrupt oil exports from the second-largest OPEC producer.

* U.S. stocks edged up on Friday, boosted by bullish news from the tech sector, but major indexes fell for the week as unrest in Iraq kept investors on edge.

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