April 5, 2018 / 4:45 AM / 15 days ago

GRAINS-Soybeans edge up after slide, but China tariffs may crimp U.S. exports

    * Soybeans rebound from a near two-month low 
    * China to impose tariff on U.S. soy imports, along with
others
    * Wheat firms on concerns about U.S. winter crop

    By Colin Packham
    SYDNEY, April 5 (Reuters) - U.S. soybean futures edged
higher on Thursday after sliding to their lowest in nearly two
months in the previous session, although concerns that the
imposition of Chinese tariffs may temper demand for U.S. cargoes
capped gains.
    The most-active soybean contract on the Chicago Board of
Trade was up 0.3 percent at $10.18-3/4 a bushel by 0413
GMT. It closed 2.2 percent lower on Wednesday when the contract
hit a trough of $9.83-1/2, its weakest since Feb. 9.
    Despite the price recovery in soybeans, traders said the
introduction of new Chinese tariffs will depress demand for U.S.
supplies.
    Soybeans were among 106 U.S. products that China said on
Wednesday it would hit with 25 percent tariffs, less than 11
hours after U.S. President Donald Trump's administration
targeted 25 percent tariffs on some 1,300 Chinese industrial
technology, transport and medical products.
    China is the world's top importer of soybeans, gobbling up
about 60 percent of the oilseed to feed its livestock industry,
also the world's largest.
    "It is going to mean surplus soybeans, and lower soybean
prices in the U.S.," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
    "Brazilian farmers would be able to sell more and
Argentinean farmers will get paid well for the smaller amounts
they have this year."
    Corn futures rose 0.2 percent to $3.81-3/4 a bushel,
having slumped 1.9 percent in the previous session.
    Wheat climbed 1 percent to $4.60-1/4 a bushel.
    The U.S. Department of Agriculture said on Monday that only
32 percent of the U.S. winter wheat crop was in good to
excellent condition, down from 51 percent this time last year.
It was the lowest rating for this point in the crop year since
2002.
        
 Grains prices at  0413 GMT
 Contract       Last  Change  Pct chg   Two-day chg    MA 30  RSI
 CBOT wheat   460.25    4.50   +0.99%        +0.60%   473.25   56
 CBOT corn    381.75    0.75   +0.20%        -1.74%   382.28   52
 CBOT soy    1018.75    3.50   +0.34%        -1.85%  1042.25   41
 CBOT rice     12.39  -$0.04   -0.28%        +0.61%   $12.35   54
 WTI crude     63.66   $0.29   +0.46%        +0.24%   $62.89   49
 Currencies                                                      
 Euro/dlr     $1.228  $0.000   +0.02%        +0.09%              
 USD/AUD      0.7696  -0.002   -0.26%        +0.17%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham
Editing by Manolo Serapio Jr.)
  
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