GRAINS-Soybeans rise from 1-month low, weak demand caps gains

SYDNEY, May 8 (Reuters) – U.S. soybean futures rose for the first time in four sessions on Thursday, rebounding from a one-month low touched earlier in the week, but expectations of weaker Chinese demand kept a lid on gains.

FUNDAMENTALS

* Chicago Board Of Trade July wheat fell 0.3 percent to $7.35-3/4 a bushel, having closed down 0.2 percent on Wednesday.

* July soybeans rose 0.2 percent to $14.49-1/4 a bushel, having fallen 0.9 percent on Wednesday.

* July corn was little changed at $5.14-1/4 a bushel, having fallen 0.7 percent in the previous session.

* China’s soy imports are expected to post a third monthly fall from the 4.62 million tonnes recorded in March, analysts said ahead of preliminary trade data due Thursday.

* Brazil should produce a record 89 million to 90 million tonnes of soybeans this year, Agriculture Minister Neri Geller said on Tuesday, above the 86.1 million tonnes forecast in April by ministry agency Conab. The agency is set to release an updated estimate on Thursday.

* The USDA said farmers seeded 29 percent of their intended corn acres by Sunday, lagging the five-year average of 42 percent.

* On Friday, the USDA will release its first official production estimate for the U.S. wheat crop, along with initial forecasts for U.S. and world grain 2014/15 ending stocks.

* Wheat continues to draw support from scorching heat and dryness in the U.S. Plains and turmoil in Ukraine, which have threatened to reduce world supplies.

MARKET NEWS

* The euro stepped back from a near two-month high against the dollar early on Thursday ahead of an interest rate review by the European Central Bank, while the greenback found a steadier footing after this week’s surprisingly large pullback.

* Global oil prices rose by more than $1 a barrel on both sides of the Atlantic on Wednesday as an unexpected drop in United States inventories supported U.S. crude and escalating tensions in Libya pushed Brent higher.

* U.S. stocks mostly rose on Wednesday after comments from Federal Reserve Chair Janet Yellen signaled continued support for the economy, but the Nasdaq fell for a second session as momentum names sold off.

DATA AHEAD (GMT) FOR THURSDAY 0145 HSBC Services PMI April 0200 China Imports/Exports April 1230 U.S. Initial Jobless Claims

Grains prices at 0057 GMT Contract

Last

Change Pct chg Two-day chg MA 30 RSI CBOT wheat

735.75

-2.00 -0.27%

-0.44%

699.39 68 CBOT corn

514.25

0.25 +0.05%

-0.63%

507.40 57 CBOT soy

1449.25

3.00 +0.21%

-0.70%

1470.44 36 CBOT rice

$15.54

$0.00 -0.03%

-0.10%

$15.53 43 WTI crude

$100.83

$0.06 +0.06%

+1.34%

$101.57 50 Currencies

Euro/dlr

$1.391 $0.000 -0.01%

-0.14% USD/AUD

0.933

0.000 -0.01%

-0.24% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Richard Pullin)

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