December 13, 2019 / 4:06 AM / 2 months ago

GRAINS-Soybeans jump 1.6%, poised for biggest weekly gain in 2 months

    * Reports of U.S.-China trade deal buoy Chicago soybeans
    * Market up for 2nd week, eyes biggest weekly rise in 2
months 

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Dec 13 (Reuters) - Chicago soybeans jumped 1.6%
on Friday, with the market set for its biggest weekly gain in
more than two months as reports of a trade deal between
Washington and Beijing supported prices.
    Corn and wheat rose for a second session.
    The most-active soybean contract on the Chicago Board of
Trade is up 2.6% this week, the biggest weekly gain since
Oct. 4. Soybeans hit a high of $9.14-1/2 a bushel on Friday, the
highest since Nov. 20.
    Corn is up 1.7% for the week after shedding 1.2% last
week and wheat has added 1.7% this week, having lost more
than 3% in the previous week.
    "A phase one of U.S.-China trade deal seems to be imminent,"
said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "The risk was that these negotiations would not come to
fruition. And then the world would be left with some nasty and
disruptive trade policies from both sides."
    The White House has agreed to suspend some tariffs on
Chinese goods and reduce others in return for Beijing's pledge
to hike purchases of U.S. farm products in 2020, sources said on
Thursday, a step towards de-escalating the protracted trade war
between the world's two biggest economies.
    A sourced briefed on the status of bilateral negotiations
said the United States would suspend tariffs on $160 billion in
Chinese goods expected to go into effect on Dec. 15 and roll
back existing tariffs.
    In return, Beijing would agree to buy $50 billion in U.S.
agricultural goods in 2020, double what it bought in 2017,
before the trade conflict started, two U.S.-based sources
briefed on the talks said.
    There was support for the corn market stemming from news
that the U.S. Department of Agriculture confirmed private sales
of 1.6 million tonnes of corn to Mexico, the fifth-biggest
one-day U.S. corn sale on record.
    Consultancy Strategie Grains said soft wheat production in
the European Union would fall 3.6% in 2020 to 140.5 million
tonnes, reflecting a decline in seeding.
    Commodity funds were net buyers of CBOT corn, soybean, wheat
and soyoil futures contracts on Thursday and net sellers of
soymeal futures, traders said.
    Trader estimates of net fund buying in corn ranged widely
from 11,000 to 35,000 contracts.
    
 Grains prices at 0338 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  533.00  2.75    +0.52%   +1.77%       520.32  62
 CBOT corn   383.00  5.25    +1.39%   +1.59%       382.49  60
 CBOT soy    912.25  14.00   +1.56%   +1.22%       905.94  69
 CBOT rice   12.41   -$0.02  -0.16%   -0.32%       $12.17  65
 WTI crude   59.49   $0.31   +0.52%   +0.42%       $57.34  
 Currencies                                                
 Euro/dlr    $1.117  $0.012  +1.05%   +0.64%               
 USD/AUD     0.6924  0.009   +1.26%   +1.33%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)
  
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