May 9, 2019 / 4:29 AM / 2 months ago

GRAINS-Corn drops for second session as U.S. weather improves; soybeans fall

    * Corn falls 1 pct on forecasts of dry U.S. Midwest next
week
    * Soybeans struggle under pressure from U.S.-China trade war

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, May 9 (Reuters) - Chicago corn slid 1 percent on
Thursday, falling for a second session as forecasts for dry
weather next week in parts of the U.S. Midwest boosted hopes
that farmers will be able to catch up on planting.
    Soybeans lost ground amid Washington-Beijing trade tensions,
which curbed U.S. soybean exports to China.
    The most-active corn contract on the Chicago Board of
Trade dropped 1 percent to $3.60-3/4 a bushel by 0402 GMT.
    Soybeans fell 0.5 percent to $8.23-1/2 a bushel and
wheat lost 0.8 percent to $4.35-1/2 a bushel.
    The spotlight is on weather across the U.S. Midwest after
weeks of rain put corn plantings behind the average pace. The
U.S. Department of Agriculture (USDA) noted in an outlook that
the National Weather Service forecast below-normal rainfall in
the Midwest during May 13-17.
    The agency on Monday said 23 percent of the corn crop had
been planted, below the five-year average of 46 percent.
    Expectations for the USDA to estimate ample crop inventories
are further pressuring agriculture markets.
    The USDA, in a report on Friday, will peg 2018-19 U.S. corn
ending stocks at 2.055 billion bushels, up from 2.035 billion
last month, and soybean stocks at 920 million bushels, up from
895 million in April, according to a Reuters poll of analysts.

    Wheat ending stocks are expected to swell to 1.097 billion
bushels from 1.087 billion. 
    U.S.-China trade war is weighing on the soybean market
although the market was optimistic amid on going talk between
the two nations.
    U.S. President Donald Trump said on Wednesday he would be
happy to keep tariffs on Chinese imports as the two countries
prepare for new talks to try to rescue a faltering trade deal
amid a sharp increase in U.S. duties.
    "We, and many others, think that there is probably not
enough time to avoid the tariff imposition on Friday," said
Tobin Gorey, director of agricultural strategy, Commonwealth
Bank of Australia. "But that of itself will not de-rail the
negotiations."
    Soybeans were the single most valuable U.S. agricultural
export crop and before the trade war, China bought $12
billion-worth a year from U.S. farmers. The dispute, however,
has slashed shipments of American beans to China.
    China's soymeal futures rallied more than 2 percent on
Thursday in their biggest daily gain since October 2018, amid
renewed Sino-U.S. trade tension.
    
 Grains prices at 0402 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  435.50  -3.50   -0.80%   -0.40%       454.57  46
 CBOT corn   360.75  -3.50   -0.96%   -0.96%       367.88  47
 CBOT soy    823.50  -3.75   -0.45%   -0.81%       884.42  9
 CBOT rice   10.96   $0.01   +0.09%   +2.43%       $10.75  69
 WTI crude   61.64   -$0.48  -0.77%   +0.39%       $63.18  
 Currencies                                                
 Euro/dlr    $1.119  $0.000  -0.01%   -0.07%               
 USD/AUD     0.6974  -0.004  -0.53%   -0.21%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 

 (Reporting by Naveen Thukral; Editing by Rashmi Aich)
  
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