October 2, 2019 / 5:03 AM / 2 months ago

GRAINS-Soybeans retreat as traders unwind positions

    * Recent China purchases underpin soybeans market
    * Corn retreats from mid-Aug peak hit on Tuesday

    By Colin Packham
    SYDNEY, Oct 2 (Reuters) - U.S. soybean futures on Wednesday
retreated from a more than two-month high hit in the previous
session as some traders unwound positions, though recent Chinese
purchases and lower-than-expected estimates for North American
supplies capped losses.
    The most active soybean futures on the Chicago Board
Of Trade (CBOT) were down 0.3% at $9.16-3/4 a bushel by 0412
GMT. They rose 1.5% on Tuesday, when prices hit their highest
since July 22 at $9.20 a bushel.
    "There are some unwinding of positions weighing on prices,"
said Phin Ziebell, an agribusiness economist at National
Australia.
    "The outlook is uncertain, there are some Chinese purchases,
but the U.S.-China trade talks are volatile."
    Chinese firms purchased up to 600,000 tonnes of U.S.
soybeans on Monday as part of a tariff-free quota allotted to
importers to buy up to 2 million tonnes this week, two sources
with knowledge of the deals said.
    These deals offered some comfort to the market plagued by
fears of a prolonged trade war between Washington and Beijing.
    Providing additional support to the market was a quarterly
stocks report from the U.S. Department of Agriculture (USDA).
    The USDA pegged U.S. soybean supplies at 913 million bushels
as of Sept. 1, below the average estimate for 982 million
bushels. Soy stocks, however, were up 108% from a year earlier,
largely due to a drop in U.S. exports to China.
    The most active corn futures were down 0.5% at
$3.90-3/4 a bushel, having gained 1.2% in the previous session
when prices hit their highest since mid-August at $3.92-3/4.
    Like with soybeans, corn continued to be supported by the
USDA's supply forecasts.
    Corn stocks were at 2.114 billion bushels, the USDA said,
below projections of 2.428 billion bushels and down 1% from a
year ago. Wheat stocks were slightly above expectations at 2.385
billion bushels.
    The most-active wheat futures were down 0.6% at
$4.95-3/4 a bushel, having closed up 0.6% on Tuesday.
    
 Grains prices at  0412 GMT
 Contract      Last  Change   Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat  495.75   -3.00    -0.60%       +0.00%  478.81     63
 CBOT corn   390.75   -1.75    -0.45%       +0.71%  369.84     74
 CBOT soy    916.75   -2.75    -0.30%       +1.19%  880.99     69
 CBOT rice    11.86  -$0.02    -0.13%       -1.33%  $11.93     42
 WTI crude    54.21   $0.59    +1.10%       +0.26%  $56.28     37
 Currencies                                                      
 Euro/dlr    $1.093  $0.000    +0.03%       +0.32%               
 USD/AUD     0.6714   0.001    +0.18%       -0.52%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Subhranshu Sahu)
  
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