December 7, 2018 / 3:21 AM / 7 days ago

GRAINS-Soybeans ease for 2nd day as market awaits Chinese buying

    * Soybeans market looks for Chinese buying after trade talks
    * Chicago wheat firms after two days of losses; corn dips

 (Recasts with details, adds quote)
    By Naveen Thukral
    SINGAPORE, Dec 7 (Reuters) - Chicago soybean futures slid
for a second session on Friday, giving up ground as the market
is still awaiting promised Chinese buying following Sino-U.S.
trade talks. 
    The market is set to end the week on a positive note,
though, rising for a second consecutive week on expectations
that trade talks between the two nations in Argentina will 
result in a resumption of U.S. soybean sales to China. 
    The most-active soybean contract on the Chicago Board of
Trade lost 0.1 percent to $9.08-1/4 a bushel by 0229 GMT.
The market is up 1.5 percent so far this week. 
    China on Thursday expressed confidence in striking a trade
deal with the United States within their 90-day ceasefire
period, praising the meeting between U.S. President Donald Trump
and Chinese President Xi Jinping as highly successful. 
    But China's renewed buying of U.S. soybeans and other
agricultural products has yet to emerge. 
    "The U.S.-China deal still needs proper confirmation in the
form of buying before the market can get real confident about
progress," said Ole Houe, director of advisory services at
brokerage IKON Commodities in Sydney. 
    "Every day there is lack of progress we will likely see
beans give up a bit of ground." 
    The market came under some pressure on Thursday on concerns
over the status of the trade negotiations after the arrest of
smartphone maker Huawei Technologies Chief Financial Officer
Meng Wanzhou. 
    There is additional pressure on soybeans on expectations of
large production in South America. 
    Argentine soybean exports to China could jump to a record 14
million tonnes this season if the trade war between China and
the United States continues, the Rosario grains exchange said,
as output rebounds from last year's drought. 
    There are also forecasts of record Brazilian soybean output,
 which is expected to further reduce China's need for U.S.
supply. 
    Chicago corn lost 0.1 percent to $3.82-1/2 a bushel.
Wheat added 0.1 percent to $5.16 a bushel.
    The U.S. Department of Agriculture confirmed private corn
sales to Mexico totalling nearly 200,000 tonnes on Thursday.
 
    Egypt's GASC bought 350,000 tonnes of Russian and Ukrainian
wheat in the tender. There was no U.S. wheat offered. 
    Commodity funds were net sellers of Chicago Board of Trade
corn, wheat, soybean, soymeal and soyoil futures contracts on
Thursday, traders said. 
    
 Grains prices at  0229 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  516.00  0.50    +0.10%   -1.24%       513.08  46
 CBOT corn   382.50  -0.25   -0.07%   -0.58%       377.71  62
 CBOT soy    908.25  -1.25   -0.14%   -0.38%       881.42  66
 CBOT rice   10.83   $0.00   +0.00%   -1.32%       $10.78  50
 WTI crude   51.26   -$0.23  -0.45%   -3.08%       $57.28  
 Currencies                                                
 Euro/dlr    $1.137  $0.003  +0.25%   +0.18%               
 USD/AUD     0.7222  -0.012  -1.57%   -1.81%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips
and Tom Hogue)
  
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