September 18, 2018 / 4:16 AM / in 8 months

GRAINS-Soybeans drop to 10-year low on record U.S. crop, China demand woes

    * Soybeans little changed after falling to lowest since 2008
    * Record U.S. crop, lack of Chinese demand drag down beans
    * Corn at three-month low on all-time high U.S. yields 

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Sept 18 (Reuters) - Chicago soybean futures
dropped to a 10-year low on Tuesday as harvest of a record U.S.
crop advanced rapidly amid a growing trade dispute between
Washington and Beijing.
    Corn slid to a three-month low on U.S. harvest pressure
while wheat bounced back on worries over drought curbing
supplies in key exporting countries.
    The most-active soybean contract on the Chicago Board Of
Trade added 0.1 percent to $8.24-1/4 a bushel by 0347 GMT,
after dropping to its weakest since 2008 at $8.19-3/4 a bushel.
    Corn was unchanged at $3.48 a bushel, near the session
low of $3.47-1/2 a bushel - the lowest since June 20. Wheat
 was up 0.6 percent at $5.09-1/4 a bushel, having closed
down 0.8 percent on Wednesday.
    "The soybean market has a lot of bearish news to digest,"
said one India-based agricultural commodities analyst. "We are
expecting the USDA to further raise its yield estimates as the
U.S. crop is looking bigger."
    After the market closed on Monday, the U.S. Department of
Agriculture said the soybean harvest was 6 percent complete,
just above the average analyst estimate of 5 percent and ahead
of the five-year average of 3 percent.
    U.S. corn harvest was 9 percent complete, near an average of
analyst estimates for 10 percent and ahead of the five-year
average of 6 percent, the agency said.
    The National Oilseed Processors Association said its members
crushed 158.885 million bushels of soybeans in August, a figure
that fell below a range of trade expectations.
    Soybeans came under further pressure amid renewed
hostilities in trade war between United States and China.
    U.S. President Donald Trump escalated his trade war with
China on Monday, imposing 10 percent tariffs on about $200
billion worth of Chinese imports, but sparing smart watches from
Apple and Fitbit and other consumer products such as bicycle
helmets and baby car seats.
    China's retaliatory tariffs on U.S. soybean imports have
already taken a toll on shipments of the oilseed to the world's
biggest buyer.
    In the wheat market, there were concerns over frost damage
in Australia.
    Possible frost damage over the weekend in Western Australia
threatened to further dent a crop already diminished by drought
in the east.
    Commodity funds were net sellers of CBOT corn, wheat,
soybean, soymeal and soyoil futures contracts on Monday, traders
said.
    
 
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  509.25  3.00    +0.59%   +2.46%       542.76  56
 CBOT corn   348.00  0.00    +0.00%   -0.71%       367.71  50
 CBOT soy    824.25  0.75    +0.09%   -1.08%       860.15  42
 CBOT rice   10.22   -$0.09  -0.83%   -5.15%       $10.69  24
 WTI crude   68.60   -$0.31  -0.45%   -0.57%       $68.09  48
 Currencies                                                
 Euro/dlr    $1.169  $0.007  +0.57%   +0.05%               
 USD/AUD     0.7191  0.004   +0.57%   -0.01%               
 
 
 
    

 (Reporting by Naveen Thukral; Editing by Amrutha Gayathri)
  
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