July 6, 2018 / 12:52 AM / 3 months ago

GRAINS-Chicago soybeans hit contract-low on U.S.-China trade war

    SINGAPORE, July 6 (Reuters) - U.S. new-crop soybean prices
dropped to a contract-low on Friday, falling for a fifth session
as top importer China prepared to impose additional tariffs on
U.S. shipments amid a trade war between the two nations.
    Wheat ticked lower after two sessions of strong gains driven
by concerns over adverse weather.
    
    FUNDAMENTALS
    * Chicago Board of Trade November soybeans hit a
contract-low at $8.53 a bushel. The most-active contract
was trading slightly above a 10-year low of $8.42 a bushel
marked last month.
    * Wheat dropped 0.1 percent to $5.05-1/4 a bushel
after rising 5.3 percent in the last two sessions, while corn
 gave up 0.4 percent to $3.63 a bushel.
    * China is poised to raise tariffs on U.S. soybeans on
Friday to a level that is expected to curb Chinese demand for
U.S. shipments. 
    * President Donald Trump said on Thursday the United States
may ultimately impose tariffs on more than a half-trillion
dollars' worth of Chinese goods as the world's two largest
economies hurtled toward the start of a trade war.
    * Brazil, the world's largest soybean exporter, may have to
import the oilseed from the United States this year to satisfy
demand from local processors, an executive of exporters
association Anec said on Thursday.
    * If China's demand for Brazilian soy rises due to the trade
war with the United States, local processors may have to resort
to importing 500,000 to 1 million tonnes from the United States,
Luis Barbieri told an event in Sao Paulo. 
    * Private analytics firm Informa Economics revised upward
its forecast for the U.S. 2018 corn yield to 176.0 bushels per
acre (bpa), from 174.5 bpa previously, and raised its U.S.
soybean yield forecast to 49.8 bpa from 49.5 bpa, the firm said
on Thursday in a client note seen by Reuters.
    * Wheat futures have rallied sharply in the last two
sessions on worries about smaller harvests from major exporters.
    * The European Union may harvest almost 6 million tonnes
less wheat this year after hot and dry weather damaged some
crops, a Reuters poll showed. 
    
    MARKET NEWS
    * Stock markets in Europe and the United States advanced on
Thursday, offsetting more losses in Asia as investors were
encouraged by economic data from Germany and a report that its
big carmakers could be spared from U.S. tariffs.
    
    DATA AHEAD (GMT)
0600  Germany             Industrial output            May
0645  France              Trade balance                May
1230  U.S.                Nonfarm payrolls             Jun
1230  U.S.                Unemployment rate            Jun
1230  U.S.                International trade          May
    
 Grains prices at  0030 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  505.25  -0.25   -0.05%   +2.90%       516.32  58
 CBOT corn   363.00  -1.50   -0.41%   -0.34%       389.22  34
 CBOT soy    854.25  -1.50   -0.18%   -1.16%       953.34  9
 CBOT rice   11.87   $0.01   +0.08%   +2.11%       $11.66  55
 WTI crude   72.90   -$0.04  -0.05%   -1.67%       $68.28  66
 Currencies                                                
 Euro/dlr    $1.169  $0.000  +0.03%   +0.33%               
 USD/AUD     0.7392  0.001   +0.08%   +0.16%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral
Editing by Joseph Radford)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below