May 4, 2020 / 12:43 AM / 22 days ago

GRAINS-Chicago soybeans fall on demand concerns, wheat drops 1.3%

SINGAPORE, May 4 (Reuters) - Chicago soybean futures ticked lower on Monday as rising trade tensions between the United States and China sparked concerns over demand.

Wheat slid 1.3%, while corn was down 0.6% in early Asian trade.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board Of Trade fell 0.4% to $8.45-3/4 a bushel, as of 0023 GMT.

* Wheat dropped 1.3% to $5.09-3/4 a bushel and corn fell 0.6% to $3.16-3/4 a bushel.

* The soybean market was being weighed down by renewed trade tensions between the United States and China.

* U.S. President Donald Trump said on Thursday the Phase 1 trade deal with China was now of secondary importance to the coronavirus pandemic, threatening new tariffs on Beijing over the outbreak.

* There was additional pressure on soybeans on weak demand for livestock feed, as outbreaks of the novel coronavirus in meat-packing plants have shuttered facilities, backing up feedyards and leading to culling of animals.

* Analysts predicted active corn planting heading over the weekend, after an above-average planting pace reported last week.

* Argentine farmers have harvested 68.2% of this season’s soy crop, the Buenos Aires Grains Exchange said in a report on Thursday, with most progress over the last week made in northern growing area that escaped recent torrential rains.

* The exchange forecasts 49.5 million tonnes of soy to be harvested this year and 50 million tonnes of corn.

* Large speculators increased their net short position in CBOT corn futures in the week to April 28, 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, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.

MARKET NEWS

* The dollar rose, oil fell and stock markets were poised to slip on Monday as rising U.S.-China tensions over the coronavirus - and growing unease at the gulf between asset prices and grim economic reality - turned investors cautious.

DATA/EVENTS (GMT) 0500 India IHS Markit Mfg PMI April 0750 France Markit Mfg PMI April 0755 Germany Markit/BME Mfg PMI April 0800 EU Markit Mfg Final PMI April 1400 US Factory Orders MM March (Reporting by Naveen Thukral; Editing by Aditya Soni)

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