August 5, 2019 / 3:32 AM / a month ago

GRAINS-Soybeans face pressure from U.S.-China trade war, weather

    * Soybeans fall on escalating Washington-Beijing trade war
    * Near-perfect weather across U.S. Midwest weighs on prices

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Aug 5 (Reuters) - Chicago soybean futures lost
ground on Monday, falling for four out of five sessions, as an
escalating trade war between Washington and Beijing caused
headwinds to the market.
    Wheat dropped, giving up some of last session's strong gains
while corn lost ground.
    There was additional pressure on soybean and corn markets
stemming from benign weather across much of the U.S. Midwest
growing region.
    The most-active soybean contract on the Chicago Board of
Trade was down 0.4% at $8.65 a bushel by 0304 GMT after
finishing last week down more than 3%.
    Wheat fell 1.6% to $4.83 a bushel, having closed up
3.2% on Friday and corn was down 1.2% at $4.04-3/4 a
bushel, having gained 1.7% in the previous session.
    "U.S.-China trade war, but also picture perfect weather in
the U.S. have traders thinking that yields may make up for any
lower acres," said Ole Houe, director of advisory services at
brokerage IKON Commodities.
    "And we have the USDA report out next week which have
traders just squaring off positions and heading to the
sidelines. There is too much uncertainty and no one really knows
how the USDA will deal with the loss of planted acres."
    China's yuan skidded against the U.S. dollar on Monday,
weakening beyond the key 7-per-dollar level for the first time
in more than a decade, as pressure mounted on the world's
second-biggest economy from an escalating trade row.

    U.S. President Donald Trump last week 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.
    The U.S. corn crop may have gotten its latest-ever start
this spring, but speculators' bullish bets have lost steam in
recent weeks as the weather has not been outwardly threatening
for crop development.
    Large speculators cut their net long position in CBOT corn
futures in the week to July 30, regulatory data released on
Friday showed.
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and increased their net short
position in soybeans.
 Grains prices at 0304 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  483.00  -7.75   -1.58%   +1.52%       507.73  40
 CBOT corn   404.75  -4.75   -1.16%   +0.56%       433.45  28
 CBOT soy    865.00  -3.50   -0.40%   -0.03%       904.26  25
 CBOT rice   11.65   -$0.06  -0.51%   -2.55%       $11.79  34
 WTI crude   55.18   -$0.48  -0.86%   +2.28%       $57.46  
 Euro/dlr    $1.113  $0.002  +0.16%   +0.38%               
 USD/AUD     0.6776  -0.002  -0.34%   -0.34%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential
 (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)
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