December 6, 2018 / 1:29 AM / 2 months ago

GRAINS-Soybeans drop on lack of Chinese buying, wheat down for 2nd day

    SINGAPORE, Dec 6 (Reuters) - Chicago soybean futures slid on
Thursday with the market declining for the first time in five
sessions on lack of China's purchases of U.S. cargoes despite
trade talks between the two nations.
    Wheat slid for a second day on concerns over demand for U.S.
supplies. 
    
    FUNDAMENTALS
    * 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 his Chinese counterpart Xi
Jinping pledged to purchase more agricultural products from U.S.
farmers immediately, according to the White House.
    * But China has yet to make any purchases.
    * Forecasts of a record soybean harvest in Brazil added more
pressure on Chicago futures as bumper supplies from the world's
biggest soybean exporter could reduce China's need for U.S.
beans.
    * Analysts polled ahead of a monthly U.S. Department of
Agriculture report next week pegged Brazil's 2018/19 soybean
crop at 120.88 million tonnes, up slightly from the agency's
prior-month view.
    * Brazilian consultancy Celeres said the next harvest could
approach all-time high 130 million tonnes. 
    * Brazil, which accounts for some 7 percent of the world's
grain output, has potential to expand arable land for
agriculture on an estimated 43 million hectares in the vast
central Cerrado region, a grain producing company said on
Wednesday.
    * China will ramp up imports of Argentine soyoil after
Argentina begins harvesting its next soy crop in March, a
government official told Reuters, but talks toward reaching a
deal to sell soymeal livestock feed to China have fizzled.

    * Wheat prices are being weighed down by global demand
concerns, including from top importer Egypt. It has not issued
letters of credit covering 16 purchased cargoes, effectively
delaying payment and causing confusion among suppliers, sources
familiar with the matter told Reuters on Wednesday.
    * The cargoes included one of U.S. wheat, a sale that had
raised hopes U.S. shipments would accelerate as supplies in top
wheat exporter Russia dwindled.
    
    MARKET NEWS
    * U.S. stock futures tumbled on Thursday and Asian markets
followed after Canadian authorities arrested a top executive of
Chinese tech giant Huawei Technologies, fanning fears of further
tensions between China and the United States.
    
    DATA/EVENT AHEAD (GMT)
0700  Germany             Industrial orders           Oct
1315  U.S.                ADP national employment     Nov
1330  U.S.                International trade         Oct
1330  U.S.                Weekly jobless claims       
1500  U.S.                Factory orders              Oct
1500  U.S.                ISM non-manufacturing PMI   Nov
2345  Federal Reserve Chairman Jerome Powell gives brief
welcome remarks before the Housing Assistance Council
Rural Housing Conference   

 Grains prices at  0116 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  517.25  -0.75   -0.14%   -0.77%       512.77  59
 CBOT corn   384.25  0.00    +0.00%   +0.59%       377.61  74
 CBOT soy    910.75  -2.75   -0.30%   +0.55%       879.83  68
 CBOT rice   10.91   $0.08   +0.79%   -0.68%       $10.79  55
 WTI crude   52.56   -$0.33  -0.62%   -0.74%       $58.32  
 Currencies                                                
 Euro/dlr    $1.135  $0.000  +0.04%   -0.03%               
 USD/AUD     0.7237  -0.010  -1.36%   -1.60%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
 
 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  
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