July 25, 2019 / 4:43 AM / 3 months ago

GRAINS-Soybeans edge higher as market hopes for U.S.-China trade breakthrough

    * Soybeans extend gains for second session
    * Corn steady despite threat of hot, dry weather
    * Wheat falls after rallying 2% on Wednesday

    By Colin Packham
    SYDNEY, July 25 (Reuters) - U.S. soybean futures edged
higher on Thursday, as traders eyed a breakthrough in a trade
war between Washington and Beijing.
    Corn was little changed despite the threat of hot, dry
weather across the United States, while wheat edged lower.
    The most active soybean futures on the Chicago Board Of
Trade were up 0.3% at $9.08-1/2 a bushel by 0359 GMT,
having firmed 0.5% on Wednesday.
    The gains came as traders took comfort in a potential
thawing of the U.S.-China trade war.
    According to a source, a group of five crushers were told by
China's state planner that they could apply for exemptions from
the 25% tariffs on some U.S. soybean cargoes arriving before the
end of December.
    "Prices helped higher by news that China's government had
approved tariff exemptions for up to 3 million tonnes of US
soybeans. Good news of course, but hopes for this have been high
for some time," Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia said.
    China imposed a 25% tariff on U.S. soy imports last year as
Washington-Beijing trade disagreements boiled over into
tit-for-tat levies on each other's goods. That blow was felt on
both sides of the Pacific, with China being the top buyer of
U.S. soybeans.
    The news on tariff exemptions came as top U.S. and Chinese
negotiators will meet face-to-face next week for the first time
since leaders of both the countries agreed in June to revive
talks aimed at ending a year-long trade war between the world's
two largest economies.
    The most active wheat futures were down 0.4% at
$4.95-3/4 a bushel, having closed up 2.1% on Wednesday.
    The most active corn futures were little changed at
$4.31 a bushel, having gained 1.1% in the previous session.
    However, traders said they remain concerned about U.S. corn
    Very hot and dry weather could return to the U.S. Midwest in
the next two weeks, particularly in parts of major producing
states Illinois, Iowa and Indiana, according to a report by
Commodity Weather Group on Wednesday.
 Grains prices at  0359 GMT
 Contract             Last    Change    Pct chg    MA 30     RSI 
 CBOT wheat         495.75     -2.00     -0.40%   452.69       40
 CBOT corn          431.00      0.25     +0.06%   368.15       38
 CBOT soy           910.50      2.25     +0.25%   878.93       53
 CBOT rice           12.05     $0.02     +0.12%   $10.76       75
 WTI crude           56.04     $0.16     +0.29%   $56.93       44
 Euro/dlr           $1.114    $0.000     -0.04%                  
 USD/AUD            0.6970    -0.001     -0.09%                  
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 (Reporting by Colin Packham; Editing by Shounak Dasgupta)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below