Wheat hit by global risk aversion, profit taking

In Commodity News 15/01/2016

U.S. wheat pulled further away from three-week highs on Thursday, as a vicious selloff in commodities and equities revived worries about global growth.

FUNDAMENTALS

* Chicago Board of Trade front-month wheat dropped 0.3 percent to $4.76-1/2 a bushel, having closed down 0.7 percent on Wednesday and pulling away from a three-week top of $4.84-1/4 a bushel.

* Front-month soybeans eased a touch to $8.78-3/4 a bushel following a 0.6 percent rise on Wednesday.

* Front-month corn shed 0.3 percent to $3.57 a bushel, having gained 0.4 percent in the previous session.

* Markets were ripe for a correction after a bullish U.S. Department of Agriculture supply report sent grain prices to multi-week peaks.

* China, the world’s largest soy buyer, imported 9.12 million tonnes of soybeans in December, up 23.4 percent from 7.39 million tonnes in November.

MARKET NEWS

* The Canadian dollar wallowed at a 12-year trough early on Thursday following another slide in oil prices, while the greenback retreated from a one-week high against a basket of major currencies on tumbling stocks.

* Crude oil fell in Asian trade on Thursday, with Brent marking another 12-year low amid gloom over a world awash with supply and concerns about global economic growth hitting equity markets.

* U.S. stocks sank on Wednesday, pushing the S&P 500 to close below 1,6900 for the first time since September as investors grew anxious about weak energy prices, U.S. corporate earnings and the global economy.

DATA AHEAD (GMT)

0700  Germany            Wholesale price index            Dec 
0900  Germany            GDP                              2015 
1330  U.S.               Import prices                    Dec 
1330  U.S.               Export prices                    Dec 
1330  U.S.               Weekly jobless claims

Grains prices at 0247 GMT

  Contract        Last    Change  Pct chg  Two-day chg MA 30   RSI 
  CBOT wheat     476.50    -1.50  -0.31%    -0.99%     477.21   56
  CBOT corn      357.00    -1.00  -0.28%    +0.07%     365.97   48
  CBOT soy       879.00    -1.00  -0.11%    +0.51%     873.77   69
  CBOT rice      $11.34    $0.04  +0.35%    -3.24%     $11.46   36
  WTI crude      $30.58    $0.10  +0.33%    +0.46%     $35.85   16
  Currencies                                                
  Euro/dlr       $1.088   $0.001  +0.09%    +0.27%
  USD/AUD         0.694   -0.001  -0.19%    -0.60%

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

Source: Reuters (Reporting by Colin Packham; Editing by Christian Schmollinger)