May 7, 2019 / 4:20 AM / 12 days ago

GRAINS-Soybeans fall for 8th session on renewed U.S.-China trade tensions

    * Soybeans trade near last session's weakest since
mid-September
    * Washington-Beijing trade worries add pressure on beans,
corn

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, May 7 (Reuters) - Chicago soybean futures
extended losses into an eighth session on Tuesday, pressured by
intensifying trade tensions between Washington and Beijing.
    Corn prices slid for a second session after being supported
in recent weeks as wet weather delayed planting in parts of the
U.S. Midwest, while wheat lost more ground.
    The most-active soybean contract on the Chicago Board
of Trade had fallen 0.2 percent to $8.28-3/4 a bushel by 0346
GMT, after dropping on Monday to its weakest since Sept. 19 at
$8.16-3/4 a bushel.
    Corn slipped 0.1 percent to $3.63-3/4 a bushel, while
wheat gave up 0.5 percent to $4.35 a bushel.
    China backtracked on substantial commitments it made during
trade talks with the United States, prompting President Donald
Trump to impose additional tariffs on Chinese goods slated to go
into effect on Friday, top U.S. trade officials said on Monday.

    "The latest trade tensions were unexpected," said a
Singapore-based trader who sells soymeal and grains in Asia's
physical market. "It has become difficult to trade in such
circumstances."
    Trump said on Sunday that tariffs on $200 billion of goods
would increase to 25 percent on Friday, reversing a decision he
made in February to keep them at 10 percent due to progress in
trade talks.
    The president also said he would target a further $325
billion of Chinese goods with 25 percent tariffs "shortly,"
essentially covering all products imported into the United
States from China.
    Soybeans are the most valuable U.S. agricultural export to
China, which had been the top buyer of U.S. soybeans prior to
the trade war. Pledges by Beijing to increase imports of U.S.
farm goods had raised expectations it would also start buying
significant amounts of U.S. corn and wheat.
    U.S. tariffs, which have sparked broad selling on equity and
commodity markets, added to recent pressure on soybeans linked
to expectations that U.S. farmers will switch some areas from
corn to soybeans.
    After the market closed on Monday, the U.S. Department of
Agriculture in a weekly report said 23 percent of the corn crop
had been planted compared with 15 percent a week ago, but that
was below the average pace of 46 percent.
    The agency said 6 percent of soybeans were planted, up from
last week's 3 percent and below the average speed of 14 percent.
    Commodity funds were net sellers of CBOT corn, soybean,
soymeal, soyoil and wheat futures contracts on Monday, traders
said. Trade estimates of net fund selling in corn ranged from
10,000 to 40,000 contracts.
    
 Grains prices at 0346 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  435.00  -2.25   -0.51%   -0.68%       455.74  40
 CBOT corn   363.75  -0.50   -0.14%   -1.89%       368.63  49
 CBOT soy    828.75  -1.50   -0.18%   -1.60%       887.37  10
 CBOT rice   10.73   $0.03   +0.28%   +8.93%       $10.28  50
 WTI crude   62.20   -$0.05  -0.08%   +0.42%       $63.06  
 Currencies                                                
 Euro/dlr    $1.120  $0.001  +0.06%   +0.04%               
 USD/AUD     0.6994  0.001   +0.07%   -0.41%               
 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 and
Joseph Radford)
  
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