November 15, 2019 / 3:24 AM / 3 months ago

GRAINS-Wheat faces 4th week of decline on ample world supplies

    * Wheat futures down nearly 5% in 4 weeks of decline
    * U.S. wheat failing to win business on stiff competition
    * Uncertainty over U.S.-China trade deal weigh on beans

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 15 (Reuters) - Chicago wheat futures were on
track on Friday for their fourth week of decline, with stiff
competition from the Black Sea region hitting U.S. sales in the
global market.
    Soybeans and corn were poised for a second week of decline
amid uncertainty over a U.S.-China trade deal.
    The most-active wheat contract on the Chicago Board Of Trade
 is down 0.6% this week, taking the losses in four weeks to
nearly 5%.
    For the week, soybean has given up 1.6%, while corn
 is down 0.4%.
    U.S. wheat futures are facing headwinds amid ample global
supplies and signs of renewed competition from Russian wheat
after a relatively slow start to the country's export season.
    Egypt's state grain buyer, the General Authority for Supply
Commodities, said it bought 465,000 tonnes of Russian and
Ukrainian wheat in an international purchase tender for shipment
Jan. 5-15. No U.S. wheat was offered in the tender.
    "U.S. wheat is uncompetitive in most markets," said one
Singapore-based grains trader at an international trading
company. "Some Asian buyers are taking U.S. wheat and it is just
because they take U.S. wheat."
    The soybean market is focussed on U.S.-China trade deal.
    The world's two largest economies are trying to finalise a
limited deal that focuses largely on increased Chinese purchases
of American farm products and the opening of China's financial
services market.
    The United States is getting close to a trade agreement with
China, White House economic adviser Larry Kudlow said on
Thursday, citing what he called very constructive discussions
with Beijing.
    U.S. agricultural exports to China have suffered over the
past year after Beijing in 2018 imposed steep retaliatory
tariffs on American soybeans and other farm goods as part of the
trade war.
    The U.S. Department of Agriculture said on Thursday that
China bought 129,000 tonnes of U.S. soybeans for delivery during
the current marketing year, the first deal for farm products to
China the government has reported in a week.
    Commodity funds were net buyers of CBOT corn, soybean and
soyoil futures contracts on Thursday, and net sellers of wheat
and soymeal futures, traders said.
 Grains prices at 0308 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  507.25  -0.50   -0.10%   -1.89%       510.90  45
 CBOT corn   375.75  0.00    +0.00%   -0.53%       386.11  36
 CBOT soy    916.75  0.00    +0.00%   -0.03%       936.98  29
 CBOT rice   11.82   -$0.03  -0.21%   -1.21%       $12.04  41
 WTI crude   57.08   $0.31   +0.55%   -0.07%       $55.20  
 Euro/dlr    $1.103  $0.002  +0.18%   +0.17%               
 USD/AUD     0.6793  -0.004  -0.64%   -0.69%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; editing by Uttaresh.V and
Shailesh Kuber)
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