December 19, 2019 / 4:05 AM / a month ago

GRAINS-Soybeans ease on demand concerns, record Brazilian crop

    * Chicago soybean futures drop after rally to 5-week top
    * Price pull back on doubts over Chinese demand

 (Adds details, quote in paragraph)
    By Naveen Thukral
    SINGAPORE, Dec 19 (Reuters) - Chicago soybean futures lost
ground on Thursday, with prices pulling back from a five-week
high touched earlier this week, as concerns over Chinese demand
and expectations of a record Brazilian crop weighed on the
market.
    Corn and wheat ticked higher after closing lower in the last
session.
    The most-active soybean contract on the Chicago Board Of
Trade was down 0.3% at $9.25-3/4 a bushel by 0345 GMT,
having closed little changed on Wednesday.
    The market climbed to its highest since Nov. 8 on Tuesday.
    Corn was up 0.1% at $3.87-1/2 a bushel, after closing
down 0.8% in the previous session while wheat rose 0.1% to
$5.48-1/2 a bushel, after ending 1.4% lower on Wednesday. 
    The long-awaited U.S.-China 'phase-one' agreement agreed
upon by the two sides last week includes a commitment by Beijing
to expand purchases of U.S. farm products.
    But traders said they were wary about projections from
Washington that deals will reach $40 billion to $50 billion
within two years, compared with $24 billion before the trade
dispute.
    "It sounds kind of impossible that is what people are
talking about," said one Singapore-based trader. "We have a
large Brazilian crop coming into the market early next year,
which could limit the amount of U.S. beans China can buy."
    Chinese importers bought at least two cargoes of U.S.
soybeans after receiving another round of tariff-free quota for
U.S. shipments on Tuesday, traders in both countries said.

    The spread of African swine fever across China is expected
to reduce the amount of soymeal the country needs to feed pigs.
The disease has decimated China's pig herd since the first
outbreaks were discovered last year
    British mills have been buying more German wheat than usual
this winter after heavy rain caused serious delays to sowing of
wheat in the United Kingdom, German traders said on Wednesday.

    Commodity funds were net buyers of CBOT soybean and soymeal
futures contracts on Wednesday, and net sellers of corn, wheat
and soyoil futures, traders said.
    
 Grains prices at 0345 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  548.50  0.25     +0.05%   -0.23%       524.40  61
 CBOT corn   387.50  0.50     +0.13%   -0.13%       381.06  69
 CBOT soy    925.75  -2.75    -0.30%   +0.41%       903.57  72
 CBOT rice   13.02   -$0.02   -0.12%   +1.24%       $12.51  79
 WTI crude   60.92   -$0.01   -0.02%   +1.18%       $57.93  
 Currencies                                                 
 Euro/dlr    $1.113  -$0.001  -0.10%   +0.11%               
 USD/AUD     0.6876  -0.001   -0.12%   +0.01%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Rashmi Aich)
  
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