December 5, 2018 / 2:11 AM / 2 months ago

GRAINS-Soybeans fall for first time in four sessions

    SYDNEY, Dec 5 (Reuters) - U.S. soybean futures edged lower
for the first time in four sessions on Wednesday amid fears of a
prolonged trade war between Washington and China.

    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade were down 0.1 percent to $9.11 a bushel by 0124 GMT,
having firmed 0.7 percent on Tuesday.
    * The most active corn futures were down 0.5 percent
to $3.82-3/4 a bushel, having gained 0.7 percent in the previous
session.
    * The most active wheat futures were down 0.3 percent
at $5.21 a bushel, having closed up 0.2 percent on Wednesday. 
    * U.S. President Donald Trump agreed to postpone new tariffs
during a 90-day truce, while his Chinese counterpart Xi Jinping
pledged to purchase more agricultural products from U.S. farmers
immediately.
    * On Tuesday, however, Trump warned he would revert to
tariffs if the two sides could not resolve their differences.

    * However, China will need to lift tariffs it imposed on
U.S. farm products, including soybeans, before it can
realistically buy substantial volumes of U.S. goods, Chinese
traders said on Monday.
    * Agribusiness consultancy Céleres said on Tuesday that
Brazilian farmers may produce 123 million to 130 million tonnes
of soybean in the 2018/19 crop cycle, a record volume, and that
benchmark prices were not likely to surpass $9 per bushel in
2019.
         
    MARKET NEWS  
    * The dollar edged lower on Tuesday as U.S. Treasury yields
fell, feeding fears that the Federal Reserve could pause in its
rate-hike cycle, while an inversion in part of the yield curve
was taken as a red flag for a potential recession.  
    * U.S. oil prices slipped by 1 percent early on Wednesday,
weighed down by a plunge in global stock markets amid concerns
over an economic slowdown.  
    * Wall Street tumbled more than 3 percent on Tuesday, led
lower by bank and industrial shares, as the U.S. bond market
sent unsettling signs about economic growth and investors
worried anew about global trade.  
    
    DATA AHEAD (GMT)
0145  China          Caixin services PMI                   Nov
0745  France         Current account                       Oct
0850  France         Markit services PMI                   Nov
0855  Germany        Markit services PMI                   Nov
0900  Euro zone      Markit services PMI final             Nov
1000  Euro zone      Retail sales                          Oct
1315  U.S.           ADP national employment               Nov
1500  U.S.           ISM non-manufacturing PMI             Nov
1900  Federal Reserve issues Beige Book of economic condition
        
 Grains prices at  0124 GMT
 Contract        Last    Change    Pct chg   Two-day chg    MA 30
 CBOT wheat    521.00     -1.50     -0.29%        -0.05%   512.89
 CBOT corn     382.75     -2.00     -0.52%        +0.20%   377.56
 CBOT soy      911.00     -0.75     -0.08%        +0.58%   879.83
 CBOT rice      10.96    -$0.02     -0.18%        -0.23%   $10.79
 WTI crude      52.73    -$0.52     -0.98%        -0.42%   $58.33
 Currencies                                                      
 Euro/dlr      $1.133   -$0.001     -0.10%        -0.17%         
 USD/AUD       0.7309    -0.003     -0.38%        -0.63%         
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Rashmi Aich)
  
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