June 19, 2018 / 1:17 AM / 3 months ago

GRAINS-Soybeans hit over 2-year low on weather, trade war concerns

    SINGAPORE, June 19 (Reuters) - Chicago soybean futures slid
on Tuesday to their lowest since March 2016, while corn dropped
for a fifth consecutive session on concerns over a deepening
trade war between Washington and Beijing.
    Wheat was little changed after declining in the previous
four sessions on pressure from rapidly expanding U.S. winter
crop harvest. 
    
    FUNDAMENTALS
    * U.S. soybeans are set to lose market share in China, the
biggest bean importer, as trade tensions escalate between the
two nations.
    * U.S. President Donald Trump last week announced hefty
tariffs on $50 billion in Chinese imports, and China hit back,
announcing 25 percent tariffs on 659 U.S. goods, including
soybeans, starting July 6.
    * There was additional pressure on corn and soybean prices
from crop-friendly weather across the U.S. Midwest which is
boosting crops.
    * After market hours on Monday, the U.S. Department of
Agriculture said 78 percent of the corn crop was in good to
excellent condition as compared with 77 percent a week ago and
above last year's 67 percent.
    * For soybeans, the agency said 73 percent of the crop was
in good to excellent condition versus 74 percent a week ago and
67 percent at the same time last year.
    * Brazil's soybean trading has practically ground to a halt
as uncertainty over freight costs has kept buyers and sellers at
bay despite expectations of stronger sales after an escalation
of the U.S.-China trade fight, brokers and farmers said on
Monday.
    * A prolonged rail strike in France has led to spiralling
transport costs for grain firms and raised the risk that the
EU's biggest crop producer will be saddled with more stocks than
expected when the summer harvest arrives.
    * Commodity funds were net sellers of Chicago Board of Trade
corn, wheat and soymeal futures contracts on Monday and net
buyers of soybeans and soyoil, traders said.
    
    MARKET NEWS
    * Asian stocks extended a global downturn on Tuesday, while
the safe-haven yen rose as U.S. President Donald Trump
threatened new tariffs on Chinese goods in an escalating
tit-for-tat trade war between the world's two biggest economies
that has rattled financial markets.
    
    DATA AHEAD (GMT)
0800  Euro zone             Current account            Apr
1230  U.S.                  Building permits           May
1230  U.S.                  Housing starts             May

 Grains prices at  0054 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  490.00  0.00    +0.00%   -2.29%       513.86  33
 CBOT corn   352.75  -3.25   -0.91%   -2.82%       390.03  22
 CBOT soy    899.75  -8.75   -0.96%   -2.97%       996.14  12
 CBOT rice   12.75   $0.00   +0.00%   +3.58%       $12.02  76
 WTI crude   65.72   -$0.13  -0.20%   +1.01%       $68.36  42
 Currencies                                                
 Euro/dlr    $1.163  $0.007  +0.57%   -1.32%               
 USD/AUD     0.7409  -0.007  -0.92%   -2.20%               
 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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