September 19, 2018 / 1:08 AM / in a month

GRAINS-Soybeans linger near decade low as U.S.-China trade war escalates

    SYDNEY, Sept 19 (Reuters) - U.S. soybean futures held near a
10-year low on Wednesday, under pressure from a deepening trade
war between Washington and Beijing and a huge U.S. crop.
             
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade edged up 0.1 percent to $8.15-1/4 a bushel by 0026
GMT, having closed down 1.1 percent on Tuesday when prices hit a
low of $8.12 - the lowest since December 2008.
    * The most active corn futures also rose 0.1 percent
to $3.43-1/2 a bushel, having closed down 1.4 percent in the
previous session when prices touched $3.43 a bushel - the lowest
since June 19.
    * The most active wheat futures were up 0.6 percent at
$5.13-1/2 a bushel, having closed up 0.9 percent on Tuesday. 
    * Soybeans under pressure after Beijing added $60 billion of
U.S. products to its import tariff list in retaliation for
President Donald Trump's planned levies on $200 billion worth of
Chinese goods.
    * China is by far the world's top soy consumer, while the
United States is the No. 1 soybean producer.
    * The U.S. harvest of corn and soybeans is under way, and
the U.S. Department of Agriculture (USDA) has projected
record-high yields for both crops.
    * The USDA on Tuesday said the U.S. soybean harvest was 6
percent complete, above the five-year average of 3 percent.

    * U.S. corn harvesting was 9 percent complete, ahead of the
five-year average of 6 percent, it said.
    * Wheat drew support from possible frost damage over the
weekend in western Australia. 
    * Russia's agriculture ministry projected 2018/19 wheat
exports at 30 million tonnes, below the USDA's last estimate of
35 million.
    * Egypt's state grains buyer GASC booked 180,000 tonnes of
wheat for shipment over Nov. 1-10 and a further 295,000 tonnes
for shipment over Nov. 11-20. GASC said that all of the wheat
was Russian, apart from one 60,000-tonne cargo of Ukrainian
wheat
    
    MARKET NEWS  
    * The dollar rose to a two-month high against the safe-haven
Japanese yen and advanced modestly against the euro on Tuesday
as investors appeared to discount rising trade-related tensions
between the United States and China.  
    * Oil futures rose more than 1 percent on Tuesday on signs
that OPEC would not be prepared to raise output to address
shrinking supplies from Iran, and as Saudi Arabia signaled an
informal target near current levels.  
    * Wall Street rebounded on Tuesday in a broad-based rally as
investors brushed aside intensifying trade rhetoric between the
United States and China.  
    
    DATA AHEAD (GMT)
0800  Euro zone           Current account             Jul
0830  UK                  Consumer prices             Aug
1230  U.S.                Housing starts              Aug
1230  U.S.                Building permits            Aug
        
 Grains prices at  0026 GMT
 Contract         Last    Change    Pct chg  Two-day chg    MA 30
 CBOT wheat     513.50      3.00     +0.59%       +1.43%   537.38
 CBOT corn      343.50      0.25     +0.07%       -1.29%   364.94
 CBOT soy       815.25      1.25     +0.15%       -1.00%   854.46
 CBOT rice       10.05     $0.00     +0.00%       -2.48%   $10.62
 WTI crude       69.67    -$0.18     -0.26%       +1.10%   $68.15
 Currencies                                                      
 Euro/dlr       $1.167    $0.001     +0.06%       -0.09%         
 USD/AUD        0.7224     0.001     +0.08%       +0.61%         
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
    

 (Reporting by Colin Packham; editing by Richard Pullin)
  
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