September 20, 2019 / 4:50 AM / 2 months ago

GRAINS-Corn futures set for second weekly gain on strong U.S. exports

    * Corn up 4.6% in 2 weeks on higher demand for U.S. cargoes
    * Wheat set for third weekly gain on dry weather concerns 

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 20 (Reuters) - Chicago corn futures ticked
lower on Friday, but were on track for a second weekly gain as
higher-than-expected U.S. weekly exports underpinned sentiment.
    Soybeans inched down after a rally in the previous session
on chances of a breakthrough in the Sino-U.S. trade negotiation.
    Traders hope recent goodwill gestures from Beijing,
including long-sought U.S. soybean purchases, may move both
economies closer to a deal to end the trade dispute.
    Wheat lost ground, but the market was on track for a third
weekly gain as dry weather curbs yields in the Southern
    "U.S. exports of corn as well as soybeans were pretty good,"
said one Singapore-based trader. "Further gains will be limited
unless there are issues with the U.S. crop."
    The Chicago Board of Trade most-active corn contract
was up nearly 1% this week, while soybeans have lost
almost 1%. Wheat is up 0.5% this week.
    The U.S. Department of Agriculture (USDA) in a weekly export
sales report said net 1.728 million tonnes of U.S. soybeans were
sold last week, along with 1.467 million tonnes of corn, both
above trade expectations.
    U.S. and Chinese deputy trade negotiators resumed
face-to-face talks for the first time in nearly two months on
Thursday, as the world's two largest economies try to bridge
deep policy differences and find a way out of their protracted
trade war. 
    A Chinese delegation will visit American farm regions with
U.S. officials next week in an effort to build goodwill amid
ongoing trade negotiations, U.S. Agriculture Secretary Sonny
Perdue told reporters on Thursday.
    Mild weather is forecast to continue in the U.S. Midwest
over at least the next 15 days. Above-normal rain over that term
could help crops that have lacked moisture this month but may
also delay some early harvesting.
    Wheat prices have been underpinned by concerns over dry
weather in Australia and Argentina.
    Dry weather across most of Ukraine has delayed the sowing of
winter grain for next year's crop in one of the top Black Sea
grain exporters, the nation's weather forecaster said. 

    Ukraine and its rival on Black Sea grain exports, Russia,
are both looking for rains in the coming weeks. In Russia,
though, the sowing is still running ahead of last year's pace.
    Commodity funds were net buyers of CBOT corn, soybeans,
soymeal and soyoil futures contracts on Thursday and net sellers
of CBOT wheat futures, traders said.              
 Grains prices at 0422 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  485.50  -2.50    -0.51%   +0.26%       477.23  59
 CBOT corn   371.75  -1.00    -0.27%   +1.02%       371.88  63
 CBOT soy    890.25  -2.75    -0.31%   -0.39%       875.36  63
 CBOT rice   12.34   -$0.03   -0.20%   +0.53%       $11.81  83
 WTI crude   58.73   $0.60    +1.03%   -1.03%       $56.02  
 Euro/dlr    $1.106  -$0.001  -0.11%   +0.54%               
 USD/AUD     0.6796  -0.007   -0.99%   -0.99%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips
and Subhranshu Sahu)
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