January 8, 2019 / 3:00 AM / 10 months ago

GRAINS-Soybeans ease from 3-week top, market eyes U.S.-China trade talks

    * Chicago soybeans fall after four sessions of gains
    * Market awaits outcome of U.S.-China trade talks
    * Wheat prices ease for 2nd session, corn tick higher

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Jan 8 (Reuters) - Chicago soybean futures lost
ground on Tuesday for the first time in five sessions as the
market dropped from its highest in three weeks with eyes on
trade talks between Washington and Beijing.
    Wheat slid for a second session while corn ticked higher
after closing marginally lower on Monday.
    The most-active soybean contract on the Chicago Board of
Trade was down 0.2 percent at $9.22-3/4 a bushel as of
0242 GMT, having climbed to the highest since Dec. 12 at
$9.27-3/4 a bushel on Monday.
    Wheat futures slipped 0.2 percent to $5.16 a bushel
and corn was up 0.2 percent at $3.83 a bushel.
    "Soybeans have rallied but the market wants to see positive
outcome from these trade talks before gaining further or
sustaining these gains," said PhinZiebell, agribusiness
economist at National Australia Bank.
    "There is no shortage of beans, fundamentals do not really
support of a rally in prices."
    Chinese importers made their third large U.S. soybean
purchase in the past month on Monday, as officials from both
countries meet this week for the first face-to-face talks since
agreeing to a 90-day trade war truce on Dec. 1, two traders with
knowledge of the deals said.
    Chinese state-owned firms bought at least three cargoes of
U.S. soybeans on Monday morning, or about 180,000 tonnes, the
traders said. One of them said the total was closer to 15
cargoes, or about 900,000 tonnes.
    U.S. Commerce Secretary Wilbur Ross predicted on Monday that
Beijing and Washington could reach a trade deal that "we can
live with" as dozens of officials from the world's two largest
economies resumed talks in a bid to end their trade dispute.
    Adverse weather conditions in Brazil for soybeans provided
additional support to prices. 
    Consultancy INTL FCStone cut its estimate of Brazil's
soybean crop on Friday by about 4 million tonnes to 116.25
million tonnes due to a drought affecting some areas.

 Grains prices at 0242 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  516.00  -0.75   -0.15%   +0.44%       518.11  53
 CBOT corn   383.00  0.75    +0.20%   +0.86%       379.03  68
 CBOT soy    922.75  -1.50   -0.16%   +1.10%       909.38  71
 CBOT rice   10.68   $0.01   +0.09%   +2.20%       $10.67  57
 WTI crude   48.70   $0.18   +0.37%   +3.42%       $49.21  
 Euro/dlr    $1.145  $0.006  +0.48%   +0.49%               
 USD/AUD     0.7142  0.003   +0.42%   +1.96%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Sunil Nair)
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