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|19 March, 2019

Wheat trades firm near 12-day high

The most active wheat futures on the Chicago Board Of Trade were up 0.7% at $4.59-3/4 a bushel

Image used for illustrative purpose. A view shows ears of barley during sunset in a field of the Solgonskoye private farm outside the Siberian village of Talniki in Krasnoyarsk Region, Russia August 25, 2018.

Image used for illustrative purpose. A view shows ears of barley during sunset in a field of the Solgonskoye private farm outside the Siberian village of Talniki in Krasnoyarsk Region, Russia August 25, 2018.

REUTERS/Ilya Naymushin

SYDNEY  - U.S. wheat futures rose more than 0.5 percent on Tuesday to hover near a 12-day high hit in the previous session, as traders again sought to unwind huge short positions, despite confirmation of tepid demand for North American supplies.

FUNDAMENTALS 

* The most active wheat futures on the Chicago Board Of Trade were up 0.7 percent at $4.59-3/4 a bushel by 0152 GMT. Wheat closed about 1 percent lower on Monday after hitting a high of $4.64 a bushel - the highest since March 6.

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* The most active soybean futures were down 0.1 percent at $9.06-1/4 a bushel, having closed down 0.4 percent on Monday.

* The most active corn futures were up 0.2 percent at $3.72-1/4 a bushel, having closed down 0.5 percent on Monday. Prices hit their highest since March 6 at $3.75-1/2 a bushel in the previous session.

* The U.S. Department of Agriculture reported weekly export inspections of U.S. wheat at 353,727 tonnes, below a range of trade expectations for 400,000 to 700,000 tonnes.

* The USDA reported export inspections of U.S. corn in the latest week at 795,241 tonnes, down from an adjusted figure of 803,351 tonnes the previous week.

* Wet weather and flooding in northwestern parts of the Midwest Corn Belt and the Mississippi River Delta threaten to delay corn planting and encourage farmers to switch some acres to soybeans, which can be seeded later in the season.

MARKET NEWS 

* The dollar was under pressure on Tuesday, weighed by growing expectations the Federal Reserve would shift to a more accommodative policy stance this week and concerns about slower U.S. economic growth. 

* Oil prices hovered just below 2019 highs early on Tuesday, supported by ongoing supply cuts led by producer club OPEC.

* Banks and tech helped lead Wall Street higher on Monday, while Boeing and Facebook were a drag and investors eyed this week's U.S. Federal Reserve meeting for affirmation of its commitment to "patient" monetary policy. 

DATA/EVENTS (GMT)

0930          Britain        Claimant Count Unem Change   Feb

0930          Britain        ILO Unemployment Rate        Jan

1000          Germany        ZEW Economic Sentiment       March

1000          Germany        ZEW Current Conditions       March

1400          US             Factory Orders               Jan

U.S. Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates (to March 20)

 Grains prices at  0152 GMT

 Contract      Last  Change  Pct chg  Two-day chg   MA 30   RSI

 CBOT wheat  459.75    3.00   +0.66%       -0.54%  479.83     13

 CBOT corn   372.25    0.75   +0.20%       -0.27%  376.68     33

 CBOT soy    906.25    0.50   +0.06%       -0.33%  914.49     39

 CBOT rice    10.74   $0.02   +0.19%       +0.09%  $10.56     60

 WTI crude    59.08  -$0.01   -0.02%       +0.96%  $56.00     61

 Currencies                                                    

 Euro/dlr    $1.134  $0.000   +0.03%       +0.12%              

 USD/AUD     0.7109   0.001   +0.10%       +0.31%               

 Most active contracts

 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

    (Reporting by Colin Packham; Editing by Subhranshu Sahu)

© Reuters News 2019

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