SINGAPORE, May 12 (Reuters) – Chicago wheat fell to its lowest in two weeks on Monday, weighed down by U.S. Department of Agriculture forecasts of plentiful global supplies.
Soybean prices rose for a third straight session, supported after the USDA cut its forecast of old-crop U.S. ending stocks by more than expected in its monthly supply/demand report.
* In its first estimates of the 2014 harvest, the USDA pegged U.S. winter wheat production at 1.403 billion bushels and the hard red winter wheat crop at 746 million bushels, roughly in line with trade expectations.
* “The USDA’s forecast for relatively comfortable global wheat supplies for the year ahead outweighed forecasts for a small U.S. wheat crop,” said Luke Mathews, commodities strategist, Commonwealth Bank of Australia.
* Global wheat production for 2014/15 is forecast at 697 million tonnes, down from a record 714 million tonnes in 2013/14, the USDA said. But global wheat stocks for 2014/15 are seen rising by almost 1 million tonnes to 187.4 million tonnes.
* Soybeans have gained after the USDA lowered its forecast of 2013/14 U.S. soy ending stocks to 130 million bushels, below an average of analyst estimates for 134 million.
* Improving weather for planting in the U.S. Midwest is pressuring corn prices. Some traders expect the USDA to report planting progress at around 60 percent in its next weekly progress report on Monday, up from 29 percent as of May 4.
* Asian shares began the week on a cautious note as investors braced for an escalation in East-West tensions after pro-Moscow rebels declared victory in a referendum on self-rule in eastern Ukraine.
* The euro was on a steadier footing after two straight sessions of steep losses, but should stay under pressure amid the persistent threat of policy action from the European Central Bank.
* U.S. crude futures fell modestly in range-bound trade on Friday as the market balanced support from a drawdown in domestic crude stockpiles against technical sell points that have kept oil from rallying.
DATA AHEAD (GMT) 0500 Japan Economy watchers poll April 1800 U.S. Federal budget April
Grains prices at 0106 GMT Contract
Change Pct chg MA 30 RSI CBOT wheat
707.25 -15.25 -2.11% 867.98 41 CBOT corn
-3.75 -0.74% 758.70 44 CBOT soy
1.25 +0.08% 1580.15 58 CBOT rice
$0.02 +0.13% $15.48 35 WTI crude
$0.14 +0.14% $89.32 48 Currencies
$1.375 $0.146 +11.89% USD/AUD
0.935 -0.120 -11.37% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Joseph Radford)