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Naveen Thukral

GRAINS-Corn faces biggest weekly loss in 3 years on U.S. crop outlook

Aug 15 2019

* Corn down nearly 11% this week, most since June 2016 * USDA's forecast of bigger U.S. crop weighs on corn prices (Adds details, quotes) By Naveen Thukral SINGAPORE, Aug 16 Chicago corn futures ticked higher on Friday, but the market was set for its biggest weekly drop in three years, driven down by expectations of a bigger U.S. crop. Soybeans gained ground after dropping for the last two sessions, however the market was poised for a weekly loss, falling for four out of five weeks. The Chicago Board of Trade most-active corn contract is down almost 11% this week, the biggest decline since June 2016. Soybeans have given up nearly 2% while wheat is down around 5%. The U.S. Department of Agriculture (USDA) surprised the market this week with a higher estimate for corn production despite historic planting delays. Forecasts for good weather for crop development across much of the U.S. Midwest during the next few weeks cast a bearish tone across the grains markets. "Weather forecasts look favourable for the crop, but still great conjecture around the crop size and not many believe in the USDA numbers," said Ole Houe, director of advisory services at brokerage IKON Commodities. "So, I think markets have done too much work to the downside." The U.S. soybean crush in July topped most trade estimates and surged from a 21-month low in June to the sixth-highest for any month on record, according to National Oilseed Processors Association (NOPA) data released on Thursday. NOPA members, which handle about 95% of all soybeans processed in the United States, crushed 168.093 million bushels of soybeans in July, the highest-ever for the month and the largest monthly crush since March. The USDA on Thursday morning reported export sales of old-crop U.S. corn in the week ended Aug. 8 below trade expectations at 56,200 tonnes and new-crop sales within expectations at 307,600 tonnes. The government said weekly net export sales of soybeans added up to cancellations of 109,800 tonnes for the current marketing year. New-crop soybean export sales totalled a better-than-expected 817,400 tonnes. Export sales of U.S. wheat were 462,200 tonnes, near the high end of a range of trade expectations. Strategie Grains has made a sharp increase to its forecasts for European Union production and exports of soft wheat this season, citing strong harvest expectations in France and Britain together with increasingly competitive EU export prices. The French consultancy now sees 2019-20 soft wheat production in the EU at 142.9 million tonnes, up from 140.6 million tonnes projected in July and 12% above last year's drought-hit crop, it said in a monthly grain report. Grains prices at 0323 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 470.50 1.50 +0.32% -0.32% 495.66 35 CBOT corn 372.75 1.75 +0.47% -1.00% 422.19 21 CBOT soy 875.50 4.75 +0.55% -1.52% 894.51 48 CBOT rice 11.31 -$0.01 -0.09% -1.27% $11.77 32 WTI crude 55.06 $0.59 +1.08% -0.31% $56.29 Currencies Euro/dlr $1.110 -$0.004 -0.35% -0.63% USD/AUD 0.6792 0.005 +0.67% -0.12% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Richard Pullin and Shounak Dasgupta)

GRAINS-Corn rises after deep losses, U.S. rain forecasts cap gains

Aug 15 2019

* Corn firms after 3 days of losses, U.S. weather in focus * Chicago soybeans tick up after closing lower, wheat firms (Adds details, quote) By Naveen Thukral SINGAPORE, Aug 15 Chicago corn rose for the first time in four sessions on Thursday as bargain buying lifted prices, but gains were limited on expectations of favourable rains across the U.S. Midwest. Soybeans edged higher after closing lower, while wheat firmed although ample supplies kept a lid on the market. Forecasts for some rain in key growing areas of the U.S. Midwest in the coming weeks is adding pressure on the corn market and bolstered the production view issued by the U.S. Department of Agriculture on Monday. The Chicago Board of Trade most-active corn contract rose 0.6% to $3.72-1/2 a bushel by 0334 GMT, soybeans added 0.4% to $8.81-1/2 a bushel and wheat gained 0.5% to $4.76 a bushel. Corn prices dropped to their lowest since mid-May on Wednesday, having lost more than 11% in the last three sessions. The USDA surprise boost to its corn production forecast continues to hang over the market. But analysts warned that U.S. corn crop is still vulnerable. "U.S. corn crops are still behind their usual development cycle, so the chance of weather-crop mismatch is greater," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "Too hot for some phases and, later, too cool for other phases can still have a material impact on yields." Analysts are expecting a USDA report later on Thursday to show weekly export sales of soybeans between 150,000 tonnes and 700,000 tonnes. A week ago, soybean export sales totalled 419,914 tonnes. Wheat harvesting is coming to an end in the European Union's top producing countries but repeated rains in recent weeks are causing concerns about quality loss in some areas, experts said on Wednesday. Harvesting is almost finished in France, Germany and Poland but rains are interrupting work in Britain. German wheat exporters are seeking access to new markets including China, Mexico and Indonesia, an industry association said, following signals that Saudi Arabia is about to open up to imports from Russia. Saudi Arabia has been Germany's biggest market for wheat exports in recent years, but German firms face much tougher competition after Saudi state grain buyer SAGO said last Thursday that it will relax quality specifications for wheat imports from its next tender. Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Wednesday. They were net buyers of wheat, traders said. Grains prices at 0334 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 476.00 2.25 +0.47% +0.85% 495.84 39 CBOT corn 372.50 2.25 +0.61% -1.06% 422.18 20 CBOT soy 881.50 3.50 +0.40% -0.84% 894.71 47 CBOT rice 11.45 -$0.05 -0.43% -0.04% $11.78 40 WTI crude 55.00 -$0.23 -0.42% -3.68% $56.39 Currencies Euro/dlr $1.114 $0.001 +0.04% -0.23% USD/AUD 0.6779 0.003 +0.47% -0.31% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Uttaresh.V and Gopakumar Warrier)

GRAINS-Soybean rises on U.S.-China trade hopes, wheat up 1%

Aug 13 2019

* Soybeans up for 2nd session, easing trade tensions support * Corn firms after last 2 sessions of deep losses, wheat up 1% (Adds details, quote) By Naveen Thukral SINGAPORE, Aug 14 Chicago soybean futures climbed for a second session on Wednesday, supported by easing U.S.-China trade tensions and concerns over dry weather in parts of the U.S. Midwest. Corn gained ground on bargain-buying after dropping almost 10% in the last two sessions, the biggest two-day drop in six years, while wheat was up 1%. The most-active soybean contract on the Chicago Board of Trade gained 0.2% at $8.91 a bushel by 0249 GMT, corn added 0.8% to $3.79-1/2 a bushel and wheat was up 1.2% at $4.77-1/2 a bushel. The corn market has lost nearly 10% in the last two sessions, the biggest since 2013. "There seems to be some support for beans on easing of trade tensions between Washington and Beijing, although I think it's very early and this issue is very much still live," said Phin Ziebell, agribusiness economist, National Australia Bank. "There is plenty of room for caution." The Trump administration will delay imposing a 10% tariff on certain Chinese products, including laptops and cellphones, that had been scheduled to start next month, the Office of the U.S. Trade Representative said on Tuesday. Chinese Vice Premier Liu He had a telephone conversation with U.S. trade officials, China's Ministry of Commerce said in a statement on Tuesday. Liu spoke with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin. U.S. President Donald Trump on Tuesday cited China for not following through with expected large purchases of U.S. agricultural products, but appeared hopeful that Beijing's stance could change. Forecasts of dry weather in the U.S. Midwest provided additional support for the soybean market. Corn prices have been weighed down by expectations of a bigger U.S. crop. The USDA surprised grain markets on Monday by raising its outlook for this year's U.S. corn production as it reduced its estimate of rain-hit plantings by less than expected, while increasing its harvest yield projection. For the 2019-20 crop year, the corn harvest will total 13.901 billion bushels, based on an average yield of 169.5 bushels per acre, the USDA predicted in its monthly supply and demand report. Ukrainian farmers have almost completed the 2019 wheat harvest, threshing 27.9 million tonnes from 98% of the sown area, the agriculture ministry said on Tuesday. Commodity funds were net sellers of Chicago Board of Trade corn and soyoil futures on Tuesday. They were net buyers of soybeans and soymeal, and even in wheat, traders said. Grains prices at 0249 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 477.50 5.50 +1.17% -4.40% 498.28 40 CBOT corn 379.50 3.00 +0.80% -9.16% 426.35 23 CBOT soy 891.00 2.00 +0.22% -0.08% 896.38 56 CBOT rice 11.60 $0.14 +1.22% +17.72% $10.31 51 WTI crude 56.47 -$0.63 -1.10% +3.61% $56.48 Currencies Euro/dlr $1.118 -$0.004 -0.33% -0.21% USD/AUD 0.6789 0.004 +0.55% +0.03% 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 and Shounak Dasgupta)

GRAINS-Corn prices near 3-mth low on U.S. crop outlook, soybeans firm

Aug 13 2019

* Chicago corn futures down 2% to weakest since mid-May * Higher U.S. crop forecast drags down market * Soybeans rise 1.1% as USDA cuts production forecast (Adds comment, detail) By Naveen Thukral SINGAPORE, Aug 13 Chicago corn futures lost more ground on Tuesday, dropping to their lowest in nearly three months after a U.S. government forecast for higher-than-expected crop volumes. Soybeans rose more than 1%, underpinned by expectations of lower production, while wheat was little changed after Monday's biggest one-day loss since April 2016. The most-active corn contract on the Chicago Board of Trade had given up 1.7% to $3.86 a bushel by 0402 GMT, after dropping to its lowest since May 17 at $3.82-1/4 a bushel. Soybeans added 1% to $8.88-1/4 a bushel, while wheat gained 0.1% to $4.72 a bushel. "The market was shocked by the USDA's estimates of both area and yield," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "Getting rid of that extra corn takes a lot more chewing, distilling and shipping than the market was expecting." The U.S. corn harvest will be bigger than previously forecast, the U.S. Department of Agriculture said on Monday, as the government issued a surprise boost to its outlook despite concerns about a wet spring and dry summer. For the 2019/20 crop year, the corn harvest will total 13.901 billion bushels, based on an average yield of 169.5 bushels per acre, the USDA predicted in its monthly supply and demand report. Wheat markets are also facing good world supplies and heavy export competition. Wheat harvesting in Europe is generally progressing well, with work in France almost finished. European Union soft wheat exports in the 2019/20 season that started on July 1 had reached 1.33 million tonnes by Aug. 11, down 30% compared with a year earlier, European Commission data showed on Monday. The USDA lowered its soybean crop estimate to 3.680 billion bushels from 3.845 billion bushels previously. Corn may fall further into a range of $3.50 to $3.71-3/4, as it has broken a support zone of $3.89-1/2 to $3.92-3/4, according to Wang Tao, a Reuters analyst for commodities technicals. It is formed by the 50% retracement of the uptrend from $3.14-3/4 to $4.64 and the 14.6% retracement of the downtrend from $8.49 to $3.14-3/4, he said. China's agriculture ministry on Monday said it had revised down its estimate for 2018/19 soybean imports to 83.5 million tonnes, down 1.5 million tonnes from last month's estimate, due to lower-than-expected shipments in July. The ministry also upgraded its estimate for 2018/19 corn imports to 4 million tonnes, an increase of 700,000 tonnes from the previous month. The revised estimate for corn imports was mainly due to a significant reduction in U.S. sorghum imports, it said. Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Monday, traders said. They were net sellers of soyoil futures. Grains prices at 0402 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 472.00 0.25 +0.05% -5.51% 498.09 34 CBOT corn 386.00 -6.75 -1.72% -7.60% 426.57 22 CBOT soy 888.25 9.00 +1.02% -0.39% 896.28 45 CBOT rice 11.56 -$0.02 -0.13% +17.31% $10.31 47 WTI crude 54.81 -$0.12 -0.22% +0.57% $56.42 Currencies Euro/dlr $1.119 -$0.002 -0.22% -0.10% USD/AUD 0.6758 0.001 +0.09% -0.43% 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)

GRAINS-Chicago corn prices fall near 3-mth low on U.S. crop outlook

Aug 12 2019

* Chicago corn futures down 2% to weakest since mid-May * Higher U.S. crop forecast drags down market By Naveen Thukral SINGAPORE, Aug 13 Chicago corn futures lost more ground on Tuesday, dropping to their lowest in nearly three months after a U.S. government forecast for higher-than-expected crop volumes. Soybeans and wheat also slid in early Asian trade. The most-active corn contract on the Chicago Board of Trade had given up 2% to $3.85 a bushel by 0011 GMT, the weakest since May 17. Soybeans fell 0.1% to $8.78-1/4 a bushel, while wheat declined 0.4% to $4.70 a bushel. The U.S. corn harvest will be bigger than previously forecast, the U.S. Department of Agriculture said on Monday, as the government issued a surprise boost to its outlook despite concerns about a wet spring and dry summer. For the 2019/20 crop year, the corn harvest will total 13.901 billion bushels, based on an average yield of 169.5 bushels per acre, the USDA predicted in its monthly supply and demand report. Wheat markets are also facing good world supplies and heavy export competition. Wheat harvesting in Europe is generally progressing well, with work in France almost finished. European Union soft wheat exports in the 2019/20 season that started on July 1 had reached 1.33 million tonnes by Aug. 11, down 30% compared with a year earlier, European Commission data showed on Monday. The USDA lowered its soybean crop estimate to 3.680 billion bushels from 3.845 billion bushels previously. China's agriculture ministry on Monday said it had revised down its estimate for 2018/19 soybean imports to 83.5 million tonnes, down 1.5 million tonnes from last month's estimate, due to lower-than-expected shipments in July. The ministry also upgraded its estimate for 2018/19 corn imports to 4 million tonnes, an increase of 700,000 tonnes from the previous month. The revised estimate for corn imports was mainly due to a significant reduction in U.S. sorghum imports, it said. Grains prices at 0011 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 470.00 -1.75 -0.37% -5.72% 499.36 33 CBOT corn 385.00 -7.75 -1.97% -7.95% 427.44 22 CBOT soy 878.25 -1.00 -0.11% -0.54% 896.93 45 CBOT rice 11.57 -$0.01 -0.04% +1.85% $11.77 48 WTI crude 54.87 -$0.06 -0.11% +4.43% $56.57 Currencies Euro/dlr $1.121 $0.002 +0.13% +0.31% USD/AUD 0.6754 -0.003 -0.49% -0.68% 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)

GRAINS-Corn, soybeans ease ahead of key USDA report; dryness curbs losses

Aug 11 2019

* Focus on USDA's supply-demand report due later on Monday * Losses curbed by dryness concerns in parts of U.S. Midwest (Adds details, quote) By Naveen Thukral SINGAPORE, Aug 12 Chicago corn and soybean futures slid on Monday as traders squared positions ahead of a U.S. supply-demand report, although losses were limited by concerns over dry weather curbing yields in parts of the U.S. Midwest. Wheat slid, falling for the first time in four sessions. The most-active Chicago Board of Trade corn contract fell 0.5% to $4.15-1/2 a bushel by 0154 GMT, soybeans lost 0.4% to $8.88-1/4 a bushel and wheat gave up 0.4% to $4.97-3/4 a bushel. The spotlight is on the U.S. Department of Agriculture's (USDA) monthly report set for release later on Monday, which will include highly anticipated revisions to rain-hit U.S. corn and soybean planting. Analysts polled ahead of the USDA report expect the agency to cut corn and soybean acreage and production estimates. "We feel the market has pretty much taken a majority of the risk premium out over the last few weeks," said Ole Houe, director of advisory services at brokerage IKON Commodities. "A few weeks ago a lot of a bullish outlook for the August USDA report was factored in but today it is not, so we think that there is a real chance that the USDA report may provide bullish news and market will react accordingly." Grain markets were supported last week by dry weather in corn and soy production areas of the U.S. Midwest, which could dent yield prospects after excessive spring rains that delayed or prevented many farmers from planting. Markets are also monitoring developments in a deepening trade war between the United States and China that has already slashed U.S. agricultural exports to the world's top commodities importer. U.S. President Donald Trump said on Friday that he was not ready to make a trade deal with China, fanning fears of a drawn-out and disruptive trade dispute that is now in its second year. Russia has been granted permission to export wheat to Saudi Arabia, Interfax news agency cited Russia's agriculture watchdog as saying on Friday. Reuters earlier reported that Saudi Arabia planned to relax its bug-damage specifications for wheat imports from its next tender onwards, opening the door to Black Sea imports and strengthening ties with Russia beyond energy cooperation. Ukraine, which expects its 2019 grain crop to be in line with last year's level of around 70 million tonnes, had harvested 36.8 million tonnes of early grains by Aug. 9, the agriculture ministry said on Friday. Farmers have threshed 9.5 million hectares of grains or 95% of the sown area, the ministry said in a statement. The harvested volume includes 27.1 million tonnes of wheat and 8.5 million tonnes of barley. Grains prices at 0154 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 497.75 -1.75 -0.35% -0.15% 500.28 54 CBOT corn 415.50 -2.25 -0.54% -0.66% 428.46 48 CBOT soy 888.25 -3.50 -0.39% +0.59% 897.26 58 CBOT rice 11.37 $0.00 +0.00% +0.13% $11.76 32 WTI crude 54.19 -$0.31 -0.57% +3.14% $56.54 Currencies Euro/dlr $1.121 $0.001 +0.07% +0.25% USD/AUD 0.6781 -0.001 -0.09% -0.28% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Richard Pullin)

GRAINS-Corn, soybeans set for weekly gains ahead of USDA report

Aug 08 2019

* Corn, soybeans poised for 1st weekly gain in four weeks * Traders square positions ahead of USDA monthly report (Adds details, quote) By Naveen Thukral SINGAPORE, Aug 9 Chicago corn and soybean futures were little changed on Friday as traders squared positions ahead of a U.S. government report next week, which is expected to clarify how many acres have been planted, with both the markets poised for weekly gains. The most-active corn contract on the Chicago Board of Trade is up 2.2% this week after falling for the last three weeks, while soybeans and wheat have risen 1.7%. "The USDA's next set of crop estimates are published on Monday. The market is likely to continue positioning ahead of that report and it seems loose shorts are jumping off for now," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. The U.S. Department of Agriculture (USDA) will issue monthly supply and demand estimates next week that are likely to provide a short-term focus amid widely differing market assessments of this year's crop estimates. Rains and flooding resulted in record planting delays in April and May across the U.S. Midwest. In the soybean market, the focus is on the intensifying U.S.-China trade war. China bought small amounts of U.S. soybeans, wheat, sorghum and pork last week, ahead of the latest escalation of trade tensions with Washington, according to U.S. government data issued on Thursday, in what may be the last U.S. farm commodity sales to China for the foreseeable future. China's Ministry of Commerce said this week that purchases of U.S. agricultural products by Chinese companies have been "suspended". A jump in prices for Brazilian soybeans is putting off buyers in China, two traders said, even as the rise was driven by expected demand from the world's No.2 economy as the trade war with Washington escalates. Saudi Arabia will relax its bug-damage specifications for wheat imports from its next tender onwards, it told Reuters on Thursday, opening the door to Black Sea imports and strengthening ties with Russia beyond energy cooperation. Russia has long sought access to Saudi Arabia's wheat market as Moscow tries to take further market share in Middle Eastern and North African wheat markets from the European Union and the United States. Ukraine's grain exports have risen to about 4.7 million tonnes so far in the 2019/20 July-June export season, up from 3.1 million tonnes at the same time last year, the agriculture ministry said on Thursday. Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal, soyoil futures contracts on Thursday, traders said. Grains prices at 0217 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 498.50 0.00 +0.00% +2.10% 501.23 55 CBOT corn 418.25 0.00 +0.00% +1.03% 428.90 52 CBOT soy 882.75 -0.25 -0.03% +1.85% 898.11 50 CBOT rice 11.32 -$0.04 -0.31% -0.44% $11.77 26 WTI crude 52.65 $0.11 +0.21% +3.05% $56.62 Currencies Euro/dlr $1.120 $0.002 +0.15% -0.02% USD/AUD 0.6810 0.001 +0.15% +0.81% 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 and Shounak Dasgupta)

Chinese soybean buyers shy away from Brazilian cargoes as prices jump: traders

Aug 08 2019

SINGAPORE A jump in prices for Brazilian soybeans is putting off buyers in China, two traders said, even as the rise was driven by expected demand from the world's No.2 economy as its trade war with Washington intensifies.

GRAINS-Corn up for 3rd session on U.S. weather concerns, wheat dips

Aug 05 2019

* Corn gains ground as adverse weather threatens U.S. yields * Wheat eases after 2-session rally, harvest pressure weighs (Adds comment, detail) By Naveen Thukral SINGAPORE, Aug 6 Chicago corn prices rose for a third session on Tuesday, underpinned by concerns over forecasts of adverse crop weather in parts of the U.S. Midwest that could potentially curb yields. Wheat slid for the first time in three sessions on harvest pressure, while soybeans edged higher although gains were capped by the intensifying U.S.-China trade war. The most-active corn contract on the Chicago Board of Trade had added 0.2% to $4.15-1/2 a bushel by 0252 GMT, having gained 1.3% in the previous session. Wheat lost 0.2% to $4.93-3/4 a bushel and soybeans were up 0.2% at $8.70-1/2 a bushel. The U.S. Department of Agriculture in a weekly crop update said 57% of the U.S. corn was in good-to-excellent condition, matching analyst expectations but below last year's rating of 71% at this time of year. Forecasts of cooler and wetter conditions across the U.S. Midwest raised new concerns about how much of the current crop might be lost - as well as how much corn and soybean yields might be hit by the stress of excess moisture. "Chicago December corn has returned to a price level where it has about a 50 cents gain from U.S. planting delays," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "U.S. Midwest weather is turning against the current crop." The USDA said 73% of the U.S. wheat crop is in good-to-excellent condition, ahead of analyst forecasts. It said 54% of the U.S. soybean crop is in good-to-excellent condition, slightly ahead of market forecasts. The soybean market is facing pressure from renewed trade tensions between Washington and Beijing. China's Commerce Ministry said that Chinese companies have stopped buying U.S. agricultural products, and that it will not rule out imposing import tariffs on U.S. farm products that were purchased after Aug. 3. U.S. President Donald Trump last week said he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, citing insufficient progress in trade talks between the world's two largest economies. Commodity funds were net buyers of CBOT corn, wheat and soymeal futures contracts on Monday, and net sellers of soybean and soyoil futures contracts, traders said. Grains prices at 0252 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 493.75 -0.75 -0.15% +0.61% 506.49 46 CBOT corn 415.50 0.75 +0.18% +1.47% 432.48 41 CBOT soy 870.50 1.75 +0.20% +0.23% 902.33 32 CBOT rice 11.41 -$0.03 -0.22% -2.56% $11.78 27 WTI crude 55.08 $0.39 +0.71% -1.04% $57.35 Currencies Euro/dlr $1.123 $0.003 +0.24% +1.10% USD/AUD 0.6785 0.003 +0.43% -0.21% 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)

GRAINS-Soybeans face pressure from U.S.-China trade war, weather

Aug 05 2019

* Soybeans fall on escalating Washington-Beijing trade war * Near-perfect weather across U.S. Midwest weighs on prices (Adds gains in China markets, technicals, updates prices) By Naveen Thukral SINGAPORE, Aug 5 Chicago soybean futures lost ground on Monday, falling for four out of five sessions, as an escalating trade war between Washington and Beijing caused headwinds to the market. Wheat dropped, giving up some of last session's strong gains while corn lost ground. There was additional pressure on soybean and corn markets stemming from benign weather across much of the U.S. Midwest growing region. The most active soybean contract on the Chicago Board of Trade was down 0.7% at $8.62-1/4 a bushel by 0706 GMT after finishing last week down more than 3%. Wheat fell 1.6% to $4.83 a bushel, having closed up 3.2% on Friday and corn was down 1.3% at $4.04-1/4 a bushel, having gained 1.7% in the previous session. "U.S.-China trade war, but also picture-perfect weather in the U.S. have traders thinking that yields may make up for any lower acres," said Ole Houe, director of advisory services at brokerage IKON Commodities. "And we have the USDA report out next week which have traders just squaring off positions and heading to the sidelines. There is too much uncertainty and no one really knows how the USDA will deal with the loss of planted acres." China's agricultural markets, including soybean and soymeal futures, rallied after a media report that China has asked state firms to halt imports of U.S. products. Dalian soybeans finished up 1% while soymeal added 2.1%. China on Monday let the yuan tumble beyond the key 7-per-dollar level for the first time in more than a decade, in a sign Beijing might be willing to tolerate further currency weakness in the face of an escalating trade row with the United States. U.S. President Donald Trump last week said he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, citing insufficient progress in trade talks between the world's two largest economies. The U.S. corn crop may have gotten its latest-ever start this spring, but speculators' bullish bets have lost steam in recent weeks as the weather has not been outwardly threatening for crop development. On the technical front, CBOT soybean November contract may test a support at $8.56-1/2 per bushel, with a good chance of breaking below this level and falling to $8.43, according to Wang Tao, Reuters analyst for commodities technicals. Large speculators cut their net long position in CBOT corn futures in the week to July 30, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and increased their net short position in soybeans. Grains prices at 0706 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 483.00 -7.75 -1.58% +1.52% 507.73 40 CBOT corn 404.25 -5.25 -1.28% +0.43% 433.43 27 CBOT soy 862.25 -6.25 -0.72% -0.35% 904.17 24 CBOT rice 11.65 -$0.06 -0.51% -2.55% $11.79 34 WTI crude 55.01 -$0.65 -1.17% +1.96% $57.46 Currencies Euro/dlr $1.112 $0.001 +0.08% +0.30% USD/AUD 0.6770 -0.003 -0.43% -0.43% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)

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