June 15, 2018 / 3:03 AM / 10 days ago

GRAINS-Soybeans hit 1-year low on benign U.S. weather, Chinese demand woes

    * Soybeans extend losses, hit lowest since June last year
    * Hopes of bumper U.S. soybean, corn harvest on ideal
weather
    * Corn falls for 3rd session, wheat up after 2 days of
losses

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 15 (Reuters) - Chicago soybeans slid on
Friday to their lowest since June last year as benign weather
across the U.S. Midwest raised hopes for a bumper harvest, while
concerns over Chinese demand also weighed on the market.
    Wheat edged higher following two sessions of deep losses,
while corn eased for a third consecutive session as commodity
markets remained under pressure from a stronger dollar.
    The Chicago Board of Trade most-active soybean contract
 was down 0.8 percent at $9.20 a bushel by 0236 GMT after
marking its lowest since June 29 at $9.18-1/2 a bushel. The
contract was down for a third straight session.
    Wheat rose 0.2 percent to $5.02-1/4 a bushel and corn
 dropped 0.2 percent to $3.62-1/4 a bushel.
    "A U.S. dollar headwind adds a degree of difficulty to a
soybean market that is roughly at the 'right' price level," said
Tobin Gorey, director of agricultural strategy at Commonwealth
Bank of Australia.
    "Seasonal selling and investors selling long positions were
already headwinds."
    The dollar index gained about 0.2 percent to a two-week high
of 94.973, after rallying more than 1 percent on
Thursday.
    For the week, soybeans are down 5.1 percent, extending
two-week losses to almost 10 percent. 
    The wheat market has dropped 3.4 percent in what could be
its third consecutive weekly decline and corn has lost 4.1
percent, on course for its biggest weekly slide in a year.
    Favourable weather forecasts are raising expectations for
bumper U.S. corn and soybean production.
    Neutral conditions are likely through the Northern
Hemisphere summer this year, a U.S. government weather
forecaster said on Thursday, indicating that the extreme weather
patterns known as El Niño or La Niña are less probable during
this season.
    Concerns about trade tensions with China, the largest buyer
of the oilseed, continue to overhang the market.
    U.S. President Trump has made up his mind to impose "pretty
significant" tariffs on Chinese goods, an administration
official said on Thursday, as Beijing warned that it was ready
to respond if Washington chose to ratchet up trade tensions.

    China is the biggest customer of U.S. soybeans as it imports
60 percent of the oilseed traded worldwide.
    U.S. wheat prices rose nearly 4 percent on Tuesday after the
U.S. Department of Agriculture cut its forecast for Russia's
crop but lost most of those gains on Wednesday with overall
global supplies still seen as ample.
    
 Grains prices at  0236 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  502.25  0.75     +0.15%   -6.03%       516.38   38
 CBOT corn   362.25  -0.75    -0.21%   -4.04%       393.34   27
 CBOT soy    920.00  -7.25    -0.78%   -3.56%       1005.39  10
 CBOT rice   12.24   -$0.07   -0.57%   +2.60%       $12.05   65
 WTI crude   66.95   $0.06    +0.09%   +0.47%       $68.72   53
 Currencies                                                  
 Euro/dlr    $1.157  -$0.022  -1.84%   -1.71%                
 USD/AUD     0.7461  -0.015   -1.95%   -1.82%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  
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