May 13, 2019 / 2:33 AM / 4 months ago

GRAINS-Soybean prices drop to lowest since 2008 at below $8 a bushel

    * Soybeans hit lowest in more than 10 years at $7.99-1/2 
    * Escalating Washington-Beijing trade war weighs on prices

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, May 13 (Reuters) - Chicago soybean futures on
Monday fell to their lowest in more than 10 years, pressured by
concerns that an escalation in the trade war between Washington
and Beijing would further hit U.S. exports of the oilseed.
    The most-active soybean contract on the Chicago Board of
Trade had dropped 1.1% to $8.00-1/4 a bushel by 0208 GMT,
after earlier marking its lowest since December 2008 at
$7.99-1/2 a bushel. 
    Corn lost 0.9% to $3.48-3/4 a bushel and wheat
was down 0.6% at $4.22-1/4 a bushel.
    "China has not yet announced any retaliation to higher U.S.
tariffs. But the U.S. has said that 'no deal' will result in
U.S. tariffs being applied to all imports from China," said
Tobin Gorey, director of agricultural strategy, Commonwealth
Bank of Australia. 
     "And the U.S. has begun to harden their deadlines."
     Should the Sino-U.S. trade war drag on, U.S. agricultural
exports will likely suffer. China is expected to retaliate
against the United States for increasing its tariffs on $200
billion in Chinese goods to 25% from 10% early on Friday.
    U.S. Agriculture Secretary Sonny Perdue said on Friday that
President Donald Trump had asked him to create a plan to help
U.S. farmers cope with the heavy impact of the trade conflict.
    A new aid programme would be the second round of assistance
for farmers, after the U.S. Department of Agriculture's (USDA)
$12 billion plan last year to compensate for lower prices for
farm goods and lost sales stemming from trade disputes with
China and other nations.
    The USDA on Friday forecast bigger-than-expected domestic
supplies of soybeans, corn and wheat, further pressuring the
markets.
     Large speculators trimmed their net short position in CBOT
corn futures in the week to May 7, regulatory data released on
Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and increased their net short
position in soybeans.
    
 Grains prices at 0208 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  422.25  -2.50   -0.59%   -1.69%       450.24  30
 CBOT corn   348.75  -3.00   -0.85%   -1.27%       365.41  27
 CBOT soy    800.25  -9.00   -1.11%   -1.54%       875.25  5
 CBOT rice   11.03   $0.04   +0.36%   +0.82%       $10.73  73
 WTI crude   61.54   -$0.12  -0.19%   -0.26%       $63.31  
 Currencies                                                
 Euro/dlr    $1.123  $0.000  +0.00%   +0.12%               
 USD/AUD     0.6981  -0.002  -0.27%   -0.10%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Colin Packham; Editing by Joseph Radford)
  
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