August 2, 2019 / 3:12 AM / 20 days ago

GRAINS-Soybeans face biggest weekly loss in nearly 3 months on trade woes

    * Soybeans set for 3rd week of losses on U.S.-China trade
war
    * Wheat up 0.8% but faces weekly loss, corn futures edge up

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Aug 2 (Reuters) - Chicago soybean futures were on
track on Friday for their biggest weekly decline in nearly three
months as an escalation in a year-long dispute between
Washington and Beijing weighed on the market.
    Wheat gained 0.8% as the market recovered on bargain buying,
following three days of losses while corn also rose.
    The most-active soybean contract on the Chicago Board Of
Trade (CBoT) is down 3.7% this week, the biggest fall
since the week ending May 10.
    Corn has lost 4.7% for the week and wheat is
down 3.3% with both markets extending dropping for a third
consecutive week.
    Soybeans tumbled after U.S. President Donald Trump said he
would impose an additional 10% tariff on $300 billion worth of
Chinese imports starting Sept. 1, citing insufficient progress
in trade talks between the world's two largest economies. 

    "A U.S.-China trade deal looks further away than ever
today," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "The macro implication is slower global growth. And
commodity prices, or at least those without some gravity-defying
supply deficit, fell sharply."
    U.S. Department of Agriculture's confirmation earlier that a
private Chinese company bought 68,000 tonnes of soybeans in the
week ended July 25, the first soybean purchase since Beijing
offered to exempt five crushers from import tariffs imposed more
than a year ago as part of the U.S.-China trade dispute. 

    Forecasts for cooler weather eased concerns about the
prospects for the coming corn crop. Conditions for the U.S.
Midwest predicted below-average temperatures for this time of
the year, with rains hitting the Southern Plains.
    Brazil's soybean exports fell in July due to weaker demand
from the world's largest importer, China, but corn exports from
the South American country hit a monthly high in July,
government data showed on Thursday.
    Soybean exports from the world's largest supplier fell by
23% to 7.82 million tonnes last month, the data showed.
    Commodity funds were net sellers of CBoT corn, soybean,
wheat, soymeal, and soyoil futures contracts on Thursday,
traders said.
    
 Grains prices at 0252 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  479.50  3.75     +0.79%   -3.57%       510.78  33
 CBOT corn   404.75  2.25     +0.56%   -3.86%       436.66  23
 CBOT soy    867.75  2.50     +0.29%   -3.23%       908.70  24
 CBOT rice   11.91   -$0.05   -0.38%   -1.57%       $11.78  46
 WTI crude   55.07   $1.12    +2.08%   -5.99%       $57.52  
 Currencies                                                 
 Euro/dlr    $1.107  -$0.005  -0.47%   -0.65%               
 USD/AUD     0.6807  -0.010   -1.46%   -2.06%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Rashmi Aich)
  
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