October 14, 2019 / 1:58 AM / 2 months ago

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

    * Soybeans at highest since June 2018 on U.S.-China trade
hopes
    * Corn prices jump to 2-month high, wheat climbs to 3-month
peak

 (Adds details, quote)
    By Naveen Thukral
    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 two-month peak, while wheat rose to its highest
since mid-July.
    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
tit-for-tat tariff war that has whipsawed financial markets and
slowed global growth.
    "In our view it confirms that both the U.S. and China want a
deal, a significant development," said Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia. "But
the accord is also another stage in the negotiations. So, we are
still some way from smiles and bro hugs."
    Soybeans, the largest U.S. crop export to China, have been
supported by purchases from China in the run-up to the latest
round of trade talks, including a 398,000-tonne sale reported by
the U.S. Department of Agriculture 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.
    
 Grains prices at 0143 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  510.00  2.00     +0.39%   +3.45%       485.25  72
 CBOT corn   399.75  2.00     +0.50%   +5.13%       375.50  66
 CBOT soy    941.50  5.50     +0.59%   +1.95%       896.24  82
 CBOT rice   12.05   -$0.02   -0.12%   +0.04%       $12.02  63
 WTI crude   54.38   -$0.32   -0.59%   +1.55%       $55.72  
 Currencies                                                 
 Euro/dlr    $1.102  -$0.002  -0.14%   +0.18%               
 USD/AUD     0.6775  -0.001   -0.18%   +0.21%               
 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 and
Subhranshu Sahu)
  
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