October 14, 2019 / 1:13 AM / a month ago

GRAINS-Soybeans climb to 16-month high on U.S.-China trade optimism

    SINGAPORE, Oct 14 (Reuters) - Chicago soybean futures gained
more ground on Monday with prices hitting a 16-month peak as
progress in U.S.-China trade talks underpinned the market.
    Corn hit a 2-month high while wheat rose to its highest
since mid-July. 
    
    FUNDAMENTALS
    * The most-active soybean contract on the Chicago
Board Of Trade (CBOT) jumped to its highest since June 2018 at
$9.46 a bushel.
    * Corn rose to its highest since Aug. 12 at $4.02-1/2
a bushel and wheat touched $5.14-3/4 a bushel, the highest
since July 19. 
    * U.S. President Donald Trump on Friday outlined the first
phase of a deal to end a trade war with China and suspended a
threatened tariff hike, but officials on both sides said much
more work needed to be done before an accord could be agreed.

    * The emerging deal, covering agriculture, currency and some
aspects of intellectual property protections, would represent
the biggest step by the two countries in 15 months to end a
tariff tit-for-tat that has whipsawed financial markets and
slowed global growth.
    * Soybeans, the largest U.S. crop export to China, have been
supported by purchases of U.S. soybeans by China in the run-up
to the latest round of trade talks, including a 398,000-tonne
sale reported by the USDA on Thursday.
    * The market continues to monitor a winter storm bringing
blizzard conditions to parts of the Dakotas. Freezing
temperatures were expected for Minnesota and Iowa this weekend.
    * Large speculators trimmed their net short position in CBOT
corn futures in the week to Oct. 8, regulatory data released on
Friday showed. 
    * 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.
    
    MARKET NEWS
    * Asian share markets pushed higher on Monday as signs of
progress in the Sino-U.S. trade standoff whetted risk appetites,
while pressuring safe-haven bonds and the yen.
    
    DATA/EVENTS AHEAD (GMT)
0630  India   WPI Inflation YY     Sept  
N/A   China   Exports YY           Sept
N/A   China   Imports YY           Sept
N/A   China   Trade Balance USD    Sept
     
 Grains prices at 0058 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  511.00  3.00     +0.59%   +3.65%       485.28  73
 CBOT corn   400.50  2.75     +0.69%   +5.33%       375.53  66
 CBOT soy    944.75  8.75     +0.93%   +2.30%       896.35  83
 CBOT rice   12.04   -$0.02   -0.17%   +0.00%       $12.02  62
 WTI crude   54.60   -$0.10   -0.18%   +1.96%       $55.72  
 Currencies                                                 
 Euro/dlr    $1.103  -$0.001  -0.12%   +0.21%               
 USD/AUD     0.6782  0.000    -0.07%   +0.31%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)
  
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