December 4, 2018 / 3:24 AM / 9 months ago

GRAINS-Soybean prices ease after rally, US market waits for China action on tariffs

    * Soybeans tick lower after two sessions of gains, wheat
falls
    * U.S. soybean market awaits Chinese action on lower tariffs

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Dec 4 (Reuters) - Chicago soybean futures lost
ground on Tuesday after two sessions of gains, pressured by
doubts over China's demand for U.S. cargoes as long as trade war
tariffs remain in place.
    At a gathering of G20 countries in Argentina on Saturday,
U.S. President Donald Trump agreed to hold off on new tariffs
during a 90-day truce period, while Chinese counterpart Xi
Jinping pledged to purchase more agricultural products from U.S.
farmers immediately, the White House said.   
    But China will need to drop steep tariffs it imposed on a
range of American farm products, including soybeans, before it
can fulfil its pledge to buy substantial volumes of U.S. goods.

    The most-active soybean contract on the Chicago Board of
Trade had slid 0.5 percent to $9.01-1/2 a bushel by 0254
GMT. On Monday, the market touched its highest since June 15 at
$9.24 a bushel before giving up some of those gains.
    Wheat fell 0.6 percent to $5.18 a bushel, having
closed up 1.1 percent on Monday. Corn was down 0.4 percent
at $3.80-1/2 a bushel, after gaining 1.1 percent in the previous
session.
    "The landed cost of U.S. soybeans is $60 to $70 (a tonne)
higher than Brazilian prices when you take into account the
25-percent tariff on U.S. beans," said a Singapore-based
executive at an international trading company.
    "We don't expect much demand until the tariff is removed,"
he added, declining to be identified as he was not authorised to
speak with media.
    China will probably resume buying American soybeans around
Jan. 1 because of limited supplies in Brazil after slashing
imports from the United States due to the U.S.-China trade war,
U.S. Agriculture Secretary Sonny Perdue said on Monday.

    Brazilian soybean farmers anticipate a drop in prices if
China removes tariffs on U.S. beans in March, when new trade
terms between the world's two largest economies may be disclosed
and South American nations will be collecting another bumper
crop.
    
 Grains prices at  0254 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  518.00  -3.25   -0.62%   +2.02%       512.42  64
 CBOT corn   380.50  -1.50   -0.39%   +2.42%       377.33  66
 CBOT soy    901.50  -4.25   -0.47%   +1.61%       877.00  65
 CBOT rice   10.91   -$0.08  -0.68%   -0.09%       $10.79  57
 WTI crude   53.44   $0.49   +0.93%   +3.87%       $59.33  
 Currencies                                                
 Euro/dlr    $1.137  $0.005  +0.46%   -0.21%               
 USD/AUD     0.7359  0.004   +0.60%   +0.56%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral
Editing by Joseph Radford)
  
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