June 11, 2020 / 2:16 AM / a month ago

GRAINS-Chicago soybeans trade near 2-month peak on strong China demand

SYDNEY, June 11 (Reuters) - U.S. soybeans edged lower on Thursday amid plentiful global stockpiles, though the market hovered near a two-month high touched last week on support from upbeat China demand.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade eased 0.1% t0 $8.64-1/4 a bushel by 0142 GMT, having closed 0.3% firmer on Wednesday. The contract, however, traded near a two-month high of $8.73-1/2 a bushel last seen on June 5.

* The most active corn futures edged up 0.1% to $3.26-1/2 a bushel, having closed 0.4% weaker in the previous session when prices hit the June 4 low of $3.24-1/4 a bushel.

* The most active wheat futures were up 0.2% at $5.07-1/4 a bushel, having closed up 0.3% on Wednesday.

* China has made a string of purchases of U.S. soybeans recently. Traders reported the latest on Tuesday, when they said Chinese state-owned Sinograin bought at least 120,000 tonnes of U.S. soybeans for shipment in December.

* However, corn faced pressure after U.S. crop progress report on Monday showed an improvement in crop conditions.

* Ethanol production increased by 72,000 barrels per day last week, the U.S. Energy Information Energy reported on Wednesday, while stocks of the corn-based fuel dropped 674,000 billion barrels.

MARKET NEWS

* The dollar steadied against riskier currencies and the safe-haven yen hit a one-month high on Thursday, as the U.S. Federal Reserve’s dour economic outlook spooked investors.

* Oil prices fell in early trade on Thursday on worries about slow demand growth with coronavirus cases rising, U.S. crude stockpiles hitting an all-time high and the U.S. Federal Reserve projecting recovery from the pandemic would take years.

* The Dow and S&P 500 ended a choppy session lower on Wednesday after the Federal Reserve reassured investors of its support for the economy but projected a 6.5% decline in gross domestic product this year.

Reporting by Colin Packham, Editing by Sherry Jacob-Phillips

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