March 5, 2019 / 2:51 AM / 4 months ago

GRAINS-Soybeans extend gains as trade deal possibility ups demand hopes

    * Soybeans rally for third straight session
    * Corn firms, while wheat falls 

    By Colin Packham
    SYDNEY, March 5 (Reuters) - U.S. soybeans rose for a third
consecutive session on Tuesday, as an expected trade agreement
between Washington and Beijing stoked hopes of increased demand
for North American oilseeds.
    Corn edged higher, extending two-day gains to nearly 1
percent, while wheat fell.
    The most active soybean futures on the Chicago Board Of
Trade rose 0.1 percent to $9.17 a bushel by 0220 GMT,
having firmed 0.5 percent on Monday when prices hit a high of
$9.24-3/4 a bushel - the highest since Feb. 1.
    "The market has been oscillating between optimism and
pessimism over the U.S.-China trade deal. The deal appears
likely, which is supporting the market," said Phin Ziebell, an
agri-business economist at National Australia Bank.
    The United States and China appear close to a deal to remove
tariffs, a source briefed on negotiations said on Sunday, while
the Wall Street Journal reported that U.S. President Donald
Trump and Chinese President Xi Jinping could reach a formal
trade deal at a summit later this month.
    Analysts also noted flooding and ice buildup on key rivers
in the U.S. Midwest that has stalled the movement of barges that
supply export terminals at the Gulf of Mexico with grain and
soy.
    The most active corn futures were up 0.2 percent to
$3.75-1/4 a bushel, having gained 0.5 percent in the previous
session.
    The most active wheat futures fell 0.1 percent to
$4.55-1/4 a bushel, having closed down 0.4 percent on Monday.
    Wheat remains under pressure as major wheat importers
continue to shun U.S. supplies for cheaper alternatives.
    Ample global supplies also loom over the market.
    Australia's wheat production is expected to jump 38 percent
in 2019/20 from the just completed drought-hit season, but only
if farmers receive desperately needed rain, the country's chief
commodity forecaster said on Tuesday.
        
 Grains prices at  0220 GMT
 Contract      Last   Change  Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat  455.25    -0.25   -0.05%       -0.44%  505.12    13
 CBOT corn   375.50     0.75   +0.20%       +0.67%  383.04    36
 CBOT soy    917.00     1.00   +0.11%       +0.60%  924.76    46
 CBOT rice    10.65   -$0.03   -0.28%       +1.09%  $10.57    60
 WTI crude    56.32   -$0.27   -0.48%       +0.93%  $54.62    55
 Currencies                                                     
 Euro/dlr    $1.133  -$0.001   -0.05%       -0.38%              
 USD/AUD     0.7068   -0.002   -0.34%       -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 Rashmi Aich)
  
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