August 19, 2019 / 12:01 PM / 2 months ago

GRAINS-Prices ease on favourable Midwest weather

    * Corn, soybeans and wheat retreat after Friday's bounce
    * Rain and mild temperatures seen helping Midwest corn and soybeans
    * Trade war and high global supplies pressure prices

 (Updates with European trading, changes byline/dateline)
    By Gus Trompiz and Naveen Thukral
    PARIS/SINGAPORE, Aug 19 (Reuters) - Chicago corn, wheat and soybean futures
eased on Monday, giving up some of the previous session's gains as crop-friendly
weather in the U.S. Midwest put the focus back on the prospect of hefty
supplies.
    Corn had led a slide in Chicago grain futures for most of last week after a
higher than expected U.S. Department of Agriculture (USDA) estimate of this
year's U.S. corn crop, with a stronger dollar and the continuing trade dispute
between Washington and Beijing adding to price pressure.
    The most-active corn contract on the Chicago Board of Trade was down
1.6% at $3.74-3/4 a bushel at 1136 GMT, having rebounded 2.6% on Friday.
    CBOT soybeans were down 0.7% at $8.73-1/2 a bushel, having firmed 1%
on Friday, while CBOT wheat shed 0.8% to $4.73 a bushel after closing 1.8%
up in the previous session. 
    "Seems it was a weekend of pretty favourable weather in the U.S. Midwest,"
said Phin Ziebell, agribusiness economist at National Australia Bank. "Fingers
crossed, the season is looking better."
    A benign mix of showers and mild temperatures over the weekend was forecast
to continue this week, which could help dry parts of the eastern Midwest and
generally boost crop growth after rain-delayed spring planting.
    The market will receive further clues on harvest prospects from weekly USDA
crop ratings later on Monday as well as results from a major grain industry tour
of Midwest fields this week.
    Some market participants view the USDA's corn estimates as too high and
caution that late-developing corn and soybeans will also be vulnerable to early
autumn frosts.
    However, analysts say that any downward revisions to the U.S. harvest could
have limited price impact given large global supplies and the U.S.-China trade
tussle, which has curbed U.S. soybean exports.
    "Amid the ongoing trade disputes between the U.S. and China, high stocks and
the expectation of a high South American crop, many market participants see no
reason to believe in any lasting price recovery," Commerzbank said in a note.
    U.S. President Donald Trump on Sunday said he was not yet ready to reach a
trade deal with Beijing, citing a buoyant U.S. economy.
    Large speculators cut their net long position in CBOT corn futures in the
week ended Aug. 13, regulatory data showed on Friday. 
    The Commodity Futures Trading Commission's weekly commitments of traders
report also showed that non-commercial traders, a category that includes hedge
funds, increased their net short position in CBOT wheat and trimmed their net
short position in soybeans.    
    
    
 Prices at 1136 GMT                                               
                              Last  Change    Pct     End  Ytd Pct
                                             Move    2018     Move
  CBOT wheat                473.50   -4.00  -0.84  503.25    -5.91
  CBOT corn                 374.75   -6.00  -1.58  375.00    -0.07
  CBOT soy                  873.50   -6.25  -0.71  895.00    -2.40
  Paris wheat Dec           172.00   -1.50  -0.86  191.25   -10.07
  Paris maize Nov           166.75   -1.25  -0.74  175.25    -4.85
  Paris rape Nov            379.75   -0.25  -0.07  364.00     4.33
  WTI crude oil              55.01    0.14   0.26   45.41    21.14
  Euro/dlr                    1.11    0.00   0.08  1.1469    -3.23
 Most active contracts - Wheat, corn and soy US cents/bushel,
 Paris futures in euros per tonne
 
 

 (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by
Sherry Jacob-Phillips and David Goodman)
  
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