January 11, 2019 / 3:30 AM / 8 months ago

GRAINS-Soybeans face 1st loss in 3 weeks on lack of Chinese purchases

    * Soybeans down 1.2 pct this week as market awaits Chinese
buying
    * Chicago wheat under pressure as Egypt buys Russian wheat

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Jan 11 (Reuters) - Chicago soybean futures ticked
higher on Friday but the market is poised for its first decline
in three weeks on lack of further purchases by China despite it
holding trade talks with the United States.
    Wheat is set to end the week little changed as Egypt
purchased Russian wheat in a tender, erasing the recent gains.
    The most-active soybean futures on the Chicago Board Of
Trade are down 1.2 percent for the week, the first weekly
fall in three weeks.
    Soybeans hit a low of $9.05-3/4 a bushel on Thursday, the
weakest since Jan. 3.
    Wheat is up 0.1 percent this week after closing 1
percent higher in the previous week and corn futures down
nearly 1.1 percent for the week after closing up 2 percent last
week.
    "The market has been expecting China to make more purchases
of U.S. soybeans but that has not happened," said a
Singapore-based trader. "Brazil is about to start harvesting its
crop and there will be more competition in the market to sell
beans."
    China's commerce ministry said on Thursday this week's trade
talks were extensive and detailed, while the U.S. Trade
Representative's office said that China had pledged to purchase
"a substantial amount" of U.S. agricultural, energy and
manufactured goods and services.
    In Brazil, statistics agency Conab cut its estimate of the
2018-19 soybean harvest that is underway to 118.8 million tonnes
from 120.1 million in December, near the high end of trade
expectations.
    Brazilian agricultural consultancy Agroconsult slashed its
forecast for Brazil's 2018/2019 soybean crop by 5.2 million
tonnes on Thursday, citing a dry spell that has hurt soy fields.
    U.S. wheat export sentiment has taken a hit as Egypt bought
Russian wheat in a tender. The 415,000-tonne deal countered
recent expectations that Russian wheat was becoming
uncompetitive overseas after a brisk first half of its export
season.
     There is a 65 percent chance of an El Niño weather pattern
emerging during the northern hemisphere spring this year, a U.S.
government weather forecaster said on Thursday.
     Commodity funds were net sellers of CBOT corn, wheat,
soybean, soymeal and soyoil futures contracts on Thursday,
traders said.

 Grains prices at  0307 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  517.75  4.00    +0.78%   +0.00%       519.06  53
 CBOT corn   378.75  2.50    +0.66%   -0.33%       380.19  51
 CBOT soy    910.00  3.25    +0.36%   -0.93%       912.59  50
 CBOT rice   10.86   $0.01   +0.09%   +1.07%       $10.67  68
 WTI crude   52.44   -$0.15  -0.29%   +0.15%       $49.31  
 Currencies                                                
 Euro/dlr    $1.152  $0.013  +1.11%   +1.12%               
 USD/AUD     0.7192  0.008   +1.12%   +2.67%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Shreejay Sinha)
  
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