September 26, 2018 / 1:18 AM / in 2 months

GRAINS-Soybeans extend gains into second session despite U.S.-China trade war

    SYDNEY, Sept 26 (Reuters) - U.S. soybean futures edged
higher for a second session as low prices attracted buying
despite the negative impact of a trade war between Washington
and Beijing.
    
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade were up 0.3 percent at $8.48-1/4 a bushel by 0048
GMT, having firmed 0.6 percent on Tuesday when prices hit $8.58
a bushel - the highest since Aug. 24.
    * The most active corn futures eased 0.1 percent to
$3.63-1/4 a bushel, having gained 0.9 percent in the previous
session when prices hit the highest since Sept. 12 at $3.64-1/4
a bushel.
    * The most active wheat futures were up 0.6 percent
at$5.23-3/4 a bushel, having closed down 1 percent on Tuesday.
    * Soybeans have come under pressure as the trade war between
the United States and China escalates.
    * Oilseeds are the biggest U.S. agricultural export to
China. Shipments have nearly dried up since Beijing applied an
additional tariff on U.S. soybeans in July.
    * China is starting to buy more Argentine soybeans because
of the trade battle, while Argentina will in turn purchase more
U.S. soybeans to meet its own needs, oilseeds analysts Oil World
said on Tuesday. 
    * The U.S. soybean crop was 14 percent harvested as of
Sunday and corn was 16 percent harvested, according to U.S.
Department of Agriculture (USDA) data issued on Monday.

         
    MARKET NEWS  
    * The dollar was slightly weaker on Tuesday ahead of a
Federal Reserve meeting that is widely expected to end with an
interest rate hike, as investors already have priced in two more
rate increases this year and some in 2019, leaving little room
for further currency gains.  
    * Oil prices rose Tuesday on global supply concerns
following U.S. sanctions on Iran's oil exports, with benchmark
Brent surging to a four-year high, then retraced gains to settle
just slightly higher after U.S. President Donald Trump called
again on OPEC to boost crude output.  
    * The S&P 500 fell on Tuesday as chipmakers were dented by
ratings downgrades and utilities declined ahead of an expected
Federal Reserve interest rate hike, offsetting a boost from the
energy sector.  
    
    DATA/EVENT AHEAD (GMT)
0645  France             Consumer confidence           Sep
1400  U.S.               New home sales                Aug
1800  U.S. Federal Reserve releases policy statement
1830  Fed Chairman Jerome Powell holds news conference
        
 Grains prices at  0048 GMT
 Contract          Last   Change   Pct chg   Two-day chg    MA 30
 CBOT wheat      523.75     3.00    +0.58%        -0.62%   529.75
 CBOT corn       363.25    -0.50    -0.14%        +0.76%   362.04
 CBOT soy        848.25     2.50    +0.30%        +0.86%   848.54
 CBOT rice         9.88    $0.00    +0.00%        -0.05%   $10.51
 WTI crude        71.89   -$0.39    -0.54%        -0.26%   $68.94
 Currencies                                                      
 Euro/dlr        $1.176  -$0.001    -0.07%        +0.14%         
 USD/AUD         0.7253    0.000    +0.04%        +0.01%         
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Richard Pullin)
  
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