August 17, 2018 / 3:50 AM / 9 months ago

GRAINS-Soybean prices ease after rally, market eyes US-China trade talks

    * Soybeans down 0.6 pct after gaining over 3 pct on Thursday
    * Prices to rally if China cuts tariff on U.S. bean imports
    * Wheat futures fall, tightening global supplies limit

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Aug 17 (Reuters) - Chicago soybean prices slid on
Friday, with the market taking a breather after climbing to a
one-week high in the last session on support from expectations
that China may return to the U.S. market.
    Wheat slid, but losses were limited by tightening supplies
in Europe and the Black Sea region which are likely to drive
higher demand for U.S. wheat.
    For the week, soybeans are up 3.5 percent, the
market's biggest weekly gain in almost a month. Wheat is
up 2.1 percent, rising for four out of five weeks, and corn
 has gained 1.7 percent, recouping some of last week's deep
    "The soybean market is just awaiting further news on
U.S.-China trade talks, and if there is any rollback in tariffs
on beans, it will be highly bullish for prices," said Phin
Ziebell, an agribusiness economist at National Australia Bank.
    "With recent gains in Black Sea wheat prices, U.S. wheat is
becoming more competitive."
    China and the United States will hold lower-level trade
talks this month, the two governments said on Thursday, offering
hope that they might resolve an escalating tariff war that
threatens to engulf all trade between the world's two largest
    China takes more than 60 percent of soybeans traded
worldwide and last year bought shipments from the United States
worth some $12 billion.
    Beijing has imposed extra tariffs on imports of U.S.
soybeans and shifted its purchases to Brazil following a trade
war between the two nations.
    However, dwindling soybean supplies in Brazil and the
arrival of U.S. cargoes at China's Dalian port have suggested
China will need to import from the United States to cover its
needs, according to some traders.
    A second vessel carrying U.S. soybeans has entered China's
Dalian port, Thomson Reuters data showed, following the
unloading of U.S. beans from another ship this week.
    The U.S. Department of Agriculture said private exporters
struck deals to sell 154,404 tonnes of U.S. soy to Mexico and
200,000 tonnes of U.S. hard red winter wheat to Iraq.
    Commodity funds were net buyers of CBOT corn, wheat,
soybean, soymeal and soyoil futures contracts on Thursday,
traders said.
 Grains prices at  0329 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  557.25  -4.75   -0.85%   +2.86%       528.91  44
 CBOT corn   378.00  -1.75   -0.46%   +0.40%       372.12  50
 CBOT soy    891.25  -5.75   -0.64%   +1.31%       877.45  54
 CBOT rice   10.46   $0.00   +0.00%   +2.60%       $11.53  29
 WTI crude   65.42   -$0.04  -0.06%   -2.42%       $69.02  30
 Euro/dlr    $1.138  $0.004  +0.31%   +0.32%               
 USD/AUD     0.7266  0.003   +0.40%   +0.30%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral
Editing by Amrutha Gayathri and Joseph Radford)
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