CBOT wheat, corn and soybean futures prices soar on weather woes

Aug 26 (Reuters) - Chicago Board of Trade wheat futures rose
more than 3 percent on Monday, the biggest one-day advance since
April, on spillover strength from corn and soybeans,
short-covering and worries about frost in South American wheat
regions, traders said.
    * The CBOT September contract gapped higher at the
open and briefly traded above its 50-day moving average at $6.60
a bushel before paring gains.
    * Large speculators hold a large net short position in CBOT
wheat, leaving the market vulnerable to periodic bouts of
short-covering. 
    * The Commodity Weather Group, a private U.S. forecaster,
	
said temperatures fell to the upper teens to lower 20s Fahrenheit in 20 percent of the Argentine wheat belt, cold enough to damage crops in the early jointing stage. * Frost is also a concern in Brazil. The Brazilian government crop supply agency Conab said July frosts that hit the top wheat-producing state of Parana reduced its expected output this season to 1.98 million tonnes, from 2.7 million previously. * A vessel is due to call at the northern French port of Dunkirk this week to load 63,000 tonnes of soft wheat for China as part of the first shipment of French soft wheat to the Asian country in about nine years. * Saudi Arabia bought 720,000 tonnes of hard wheat, minimum 12.5 percent protein, in a tender for shipment in 12 cargoes between November and December. The accepted origins are from the European Union, North and South America and Australia. * USDA reported export inspections of U.S. wheat in the latest week at 31.192 million bushels, above a range of trade estimates for 26 million to 30 million. 1:16 PM CDT LAST NET PCT LOW HIGH CURRENT CHNG CHNG VOL CBOT SEP 655.00 20.5 3.2 640.00 665.00 25,133 CBOT DEC 667.25 21.25 3.3 651.25 676.50 93,728 CBOT corn futures rallied to a one-month high on Monday, led by
the new-crop December contract , on worries that heat and dry conditions across the U.S. Midwest will hurt yields, traders said. * Benchmark December corn broke through its 50-day moving average and closed above $5 a bushel for the first time since July 19. * Temperatures across the U.S. crop belt are forecast to reach the mid-90s to low 100s degrees Fahrenheit during the next two days and next weekend. Dry conditions are expected to continue over the next two weeks, U.S. weather forecasters said. * "Our best-case scenario right now would still leave much of central and southern Iowa, central Illinois and northern Missouri quite dry all the way through the 15-day forecast period," Joel Widenor, a meteorologist with Commodity Weather Group, told the Reuters Ags Forum on-line chat room. * Large speculators hold a net short position in CBOT corn, leaving the market open to bouts of short-covering. * U.S. analysts expect the USDA's weekly crop progress report due later on Monday to show a drop in U.S. corn condition ratings of one to four percentage points. USDA rated 61 percent of the crop good to excellent as of Aug. 18. * USDA reported export inspections of U.S. corn in the
latest week at 12.010 million bushels, just above a range of trade estimates for 8 million to 12 million bushels. * U.S. CIF values at the Gulf were coming under pressure by midday, traders said. * Farm advisory Pro Farmer on Friday projected record U.S. 2013 corn production of 13.46 billion bushels, based on a yield of 154.1 bushels per acre, using data collected during last week's four-day Midwest crop tour, plus other market variables. * Brazilian analyst Agroconsult projected that country's 2013/14 corn crop at 76 million tonnes, compared with 80.25 million this season. 1:28 PM CDT LAST NET PCT LOW HIGH CURRENT CHNG CHNG VOL Corn SEP 515.75 20.25 4.1 500.75 522.75 69,345 Corn DEC 500.50 30.50 6.5 479.00 508.25 289,203 Ethanol SEP 2.500 0.064 2.6 2.469 2.518 336 New-crop November soybean futures on the CBOT soared to an 11-month high on Monday as hot and dry weather threatened to cut yields in the key U.S. Midwest, traders said. * Spot soymeal posted the biggest gains in the complex, with front-month September settling up $25.40 per short ton, or 5.9 percent, at $458.60. * Soybean and soymeal contracts gapped higher at the open. * Meteorologist Don Keeney of MDA Weather Services said almost all of Iowa, the southern two-thirds of Illinois, Missouri and the southern half of Indiana would be completely dry this week and very warm. * Ahead of the USDA's weekly crop progress report due out later on Monday, analysts expected the government to lower its condition ratings for soybeans by 2 to 4 percentage points. As of Aug. 18, USDA rated 62 percent of the crop good to excellent. * USDA reported export inspections of U.S. soybeans in the latest week at 2.461 million bushels, within a range of trade estimates for 1 million to 4 million. * Farm advisory Pro Farmer on Friday forecast U.S. production at 3.158 billion bushels, with an average yield of 41.8 bushels per acre, 3 percent below USDA's current outlook for a crop of 3.255 billion, with a yield of 42.6. * Brazilian analyst Agroconsult projected the country's 2013/14 soybean crop at a record 88.4 million tonnes, up from the 81.46 million harvested early this year. * Malaysian palm oil futures surged to their highest in more than two months on Monday as a hot spell in the U.S. Midwest threatened to curb soybean yields and signaled tighter global edible oil supplies. 1:27 PM CDT SETTLE NET PCT LOW HIGH CURRENT CHNG CHNG VOL Soy SEP 1427.75 62.50 4.6 1382.25 1435.25 11,798 Soy NOV 1389.50 61.50 4.6 1348.00 1398.00 236,982 Meal SEP 458.60 25.40 5.9 441.40 463.20 13,699 Meal DEC 436.70 17.20 4.1 427.00 441.90 66,954 Soyoil SEP 44.44 1.80 4.2 42.89 44.88 22,681 Soyoil DEC 44.88 1.88 4.4 43.05 45.32 91,751 (Editing by Marguerita Choy)

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