September 16, 2019 / 4:35 AM / a month ago

GRAINS-Corn firms as market eyes uptick in ethanol demand

    * Corn hits Aug. 30 high 
    * Wheat unchanged for second session
    * Soybeans fall despite hopes for U.S.-China trade deal 

    By Colin Packham
    SYDNEY, Sept 16 (Reuters) - U.S. corn futures rose to a
17-day high on Monday as a surge in oil prices led to
expectations of an uptick in demand for oil-substitute ethanol.
    The most active corn futures on the Chicago Board Of Trade
 were up 0.4% at $3.70-1/4 a bushel, as of 0355 GMT,
slightly lower than a session high of $3.73 a bushel - the
highest since Aug. 30. Corn closed 0.4% firmer in the previous
session.
    Analysts said corn was drawing support from the rally in oil
which may encourage greater demand for ethanol.   
    "Corn is an ethanol player, we will see how long those gains
hold but for now, the oil rally is underpinning the gains," said
Phin Ziebell, agribusiness economist, National Australia Bank.
     Oil prices surged on Monday, with Brent crude posting its
biggest intraday percentage gain since the start of the Gulf War
in 1991, after an attack on Saudi Arabian oil facilities on
Saturday shut in the equivalent of 5% of global supply.

    The most active wheat futures were unchanged at
$4.83-1/2 a bushel, having closed little changed on Friday.
    The most active soybean futures pared gains to trade
0.2% higher at $8.97-1/4 a bushel, having hit a near seven-week
peak of $9.04-3/4 a bushel earlier in the session. Soybeans
ended up 0.4% on Friday.
    The fall in soybeans came despite an uptick in hope that of
a breakthrough in the U.S.-China trade war.
    China will exempt some agricultural products from additional
tariffs on U.S. goods, including pork and soybeans, China's
official Xinhua News Agency said on Friday, in the latest sign
of easing Sino-U.S. tensions ahead of a new round of talks aimed
at curbing a bruising trade war.
    The U.S. Department of Agriculture on Friday confirmed a
portion of those sales, reporting that Chinese importers booked
204,000 tonnes for 2019/20 marketing year shipment.
    
 Grains prices at  0406 GMT
 Contract        Last   Change  Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat    483.50     0.00   +0.00%       -0.05%  478.01    59
 CBOT corn     370.25     1.50   +0.41%       +0.82%  376.10    69
 CBOT soy      897.00    -1.75   -0.19%       +0.17%  872.88    77
 CBOT rice      12.24   -$0.02   -0.12%       +0.49%  $11.75    89
 WTI crude      59.63    $4.78   +8.71%       +8.24%  $55.35    69
 Currencies                                                       
 Euro/dlr      $1.107   $0.000   -0.02%       +0.09%              
 USD/AUD       0.6878    0.000   +0.01%       +0.17%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Aditya Soni)
  
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