GRAINS-Soybeans hit 2-month high on strong demand hopes
* USDA expected to confirm bumper sales of soybeans
* Wheat, corn extend gains into third session
By Colin Packham
SYDNEY, Oct 27 U.S. soybeans hit a more than two-month high on Thursday, buoyed by expectations a U.S. Department of Agriculture report later in the session would confirm strong export demand for the oilseed. Wheat rose for a third day amid signs of increased global demand, while corn also stretched gains.
The most active soybean futures on the Chicago Board Of Trade rose 0.1 percent to $10.10-3/4 a bushel by 0321 GMT, near $10.14-1/4 a bushel hit earlier - the highest since Aug.
23. Soybeans rose 2 percent on Wednesday. "Analysts have been impressed by strong export demand and are expecting to see that strength continue in today's USDA export sales report," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
"We also think that bean prices will have some weather premium because South American crops are still uncertain ... For now there are no problems with South American soybeans, but at
this point those crops are still an idea rather than a reality." Among other grains, the most active corn contract rose 0.14 percent to $3.54-1/2 a bushel, after closing up 1.4 percent in the previous session, while wheat rose 0.5 percent to $4.13-1/2 a bushel, having ended up 1.8 percent on Wednesday.
The market is waiting for the weekly U.S. grain and soy export data due later in the session for more trading cues. Analysts polled by Reuters expect the USDA report to show lofty sales of soybeans, with estimates as high as 2.5 million tonnes. Sales of corn could top 1.2 million tonnes and wheat 550,000 tonnes, they said. The world's largest wheat buyer, Egypt, on Tuesday made its biggest purchase in more than a year, easing concerns about the purchasing programme that has been disrupted by conflicting rules on levels of the ergot fungus in imports.
Grains prices at 0321 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 413.50 2.00 +0.49% +2.29% 406.47 55
CBOT corn 354.50 0.50 +0.14% +1.50% 343.68 61
CBOT soy 1010.75 0.75 +0.07% +2.02% 968.62 77
CBOT rice 10.33 $0.07 +0.68% +5.03% $10.03 47
WTI crude 49.22 $0.04 +0.08% -1.48% $48.41 44
Euro/dlr $1.090 -$0.001 -0.07% +0.12%
USD/AUD 0.7626 -0.002 -0.30% -0.25%
Most active contracts
Wheat, corn and soy US cents/bushel.
Rice: USD per hundredweight
RSI 14, exponential