November 19, 2019 / 3:22 AM / 2 months ago

GRAINS-Corn rebounds from 2-month low as U.S. harvest pace lags

    * Corn ticks higher after dropping to its lowest since Sept. 18
    * Corn harvest at 76%, soybeans at 91%; both behind average pace
    * Uncertainty over a U.S.-China trade deal caps gains

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 19 (Reuters) - Chicago corn futures ticked higher on Tuesday with the market
rising from a two-month low touched in the previous session, while soybeans recovered from their
lowest in nearly seven weeks as a slow pace of U.S. harvest underpinned prices.
    Gains in both markets were limited by renewed doubts over a U.S.-China trade deal.
    The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.2% at
$3.68-1/2 a bushel, as of 0259 GMT, after dropping to its lowest since Sept. 18 at $3.67-1/2 a
bushel on Monday.
    Soybeans were up 0.2% at $9.12-1/4 a bushel. In the previous session, soybean futures
dropped to an Oct. 4 low of $9.10 a bushel.
    The U.S. Department of Agriculture (USDA) said the U.S. corn harvest was 76% complete, while
the soybean harvest was pegged at 91%. The five-year average pace of corn harvest stands at 92% and
soybeans at 95%.
    Doubts over a U.S.-China trade deal kept a lid on prices.
    A CNBC report cited that the mood in Beijing was pessimistic about a trade deal due to U.S.
President Donald Trump's reluctance to roll back tariffs, dampening sentiment among global
    "Most participants have given up watching that deal as it is on and then off again," said Ole
Houe, director of advisory services at brokerage IKON Commodities in Sydney.
    "Prices will be range-bound until we can find some real new news."
    Chinese state media had said Washington and Beijing held "constructive talks" on trade in a
high-level phone call on Saturday that included Vice Premier Liu He, U.S. trade representative
Robert Lighthizer and Treasury Secretary Steven Mnuchin.
    CBOT wheat was down 0.1% at $5.06-3/4 a bushel, having closed up 0.9% on Monday.
    Strategie Grains has lowered its estimate of the soft wheat area for next year's harvest in the
European Union after heavy rain disrupted field work in western EU countries.
    In a monthly report, the French analyst firm pegged the EU's soft wheat area for 2020 at 23.7
million hectares, down about 200,000 hectares from its initial outlook in October and now below an
estimated 23.8 million hectares harvested this year.
    Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Monday,
and net buyers of wheat and soyoil futures, traders said.

 Grains prices at 0259 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  506.75  -0.50   -0.10%   -0.20%       511.91  47
 CBOT corn   368.50  0.75    +0.20%   -1.93%       385.04  28
 CBOT soy    912.25  2.00    +0.22%   -0.33%       936.33  49
 CBOT rice   12.08   -$0.01  -0.12%   +1.94%       $12.04  71
 WTI crude   56.91   -$0.14  -0.25%   +0.25%       $55.36  
 Euro/dlr    $1.107  $0.007  +0.60%   +0.59%               
 USD/AUD     0.6790  -0.005  -0.69%   -0.73%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
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