May 3, 2018 / 3:08 AM / a year ago

GRAINS-Soybeans drop for 2nd day as U.S. exports take hit, wheat eases

    * Soybeans fall as Chinese buyers halt purchases of U.S.
    * Record Brazilian crop adds pressure on U.S. beans
    * Wheat down for 2nd day, U.S. crop tour in focus; corn

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 3 (Reuters) - Chicago soybean futures slid
for a second consecutive session on Thursday to a six-day low
with the market coming under pressure from falling U.S. exports
as Chinese buyers shift purchases to Brazil.
    Wheat lost more ground although losses were limited by
expectations of lower U.S. yields after a drought in the
southern Plains.
    The most-active Chicago Board Of Trade soybean contract
 fell 0.3 percent at $10.40-1/4 a bushel as of 0245 GMT.
Earlier in the session, it dropped to $10.37-1/2 a bushel, the
lowest since April 27.
    Wheat lost 0.9 percent to $5.22-1/4 a bushel after
closing down 0.5 percent in the previous session and corn
slipped 0.4 percent to $4.03-1/2 a bushel, having dropped 0.2
percent in the previous session.
    "Soybean prices are likely to remain under pressure as
Chinese buyers are taking Brazilian beans, it because of
seasonal reasons as well as due to the trade spat between the
U.S. and China," said Phin Ziebell, agribusiness economist at
National Australia Bank.
    "Brazil has a record crop to sell."
    China's purchases of U.S. soybeans have come to a grinding
halt as fears of further action by Beijing to curb imports of
U.S. crops following last week's anti-dumping move on sorghum
rattles the agriculture industry.
    Soybean processing margins in China have plunged to the
negative territory after giving healthy profits to crushers
since February as Brazilian bean prices rise following strong
Chinese demand.
    The United States is sending a top-level trade delegation to
China this week, but the market was discounting hopes of an
agreement between the two countries.
    INTL FCStone raised its estimate of soybean production in
Brazil, the top supplier to China, to 117.0 million tonnes.
    The wheat market is expected to find support on lower yields
in the United States and a lack of moisture in Australia.
    The yield potential for hard red winter wheat in southwest
Kansas and northwestern Oklahoma is roughly half that of a year
ago as exceptional drought conditions take a toll on the crop,
scouts on the Wheat Quality Council's annual tour said on
    Australian farmers are planting wheat in some of the driest
soils in years, following on from a severe drought that cut
2017/18 output in the world's fourth-largest wheat exporter to
the lowest in a decade.
    Commodity funds were net sellers of CBOT soybean, corn and
wheat futures contracts on Wednesday, traders said.

 Grains prices at  0245 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  522.25   -4.50    -0.85%   +2.30%       484.96   76
 CBOT corn   403.50   -1.50    -0.37%   +0.69%       393.33   69
 CBOT soy    1040.25  -2.75    -0.26%   -0.79%       1046.70  46
 CBOT rice   13.03    $0.00    +0.00%   -0.31%       $12.96   43
 WTI crude   67.77    -$0.16   -0.24%   +0.77%       $66.20   50
 Euro/dlr    $1.197   -$0.002  -0.17%   -0.86%                
 USD/AUD     0.7512   0.002    +0.31%   -0.25%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral and Colin Packham, Editing by
Sherry Jacob-Phillips and Gopakumar Warrier)
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