January 3, 2019 / 1:56 AM / a month ago

GRAINS-Soybeans near two-week high on Brazil weather concerns

    KUALA LUMPUR, Jan 3 (Reuters) - U.S. soybean futures firmed
on Thursday, trading near two-week highs on the prospect of
declining yields in top producer Brazil due to scarce rains.    
    Wheat futures rose, in line for a second session of gains
over output concerns, while corn eased slightly.
            
    FUNDAMENTALS
    * The most-active soybean contract on the Chicago Board Of
Trade added 0.1 percent to $9.08 a bushel by 0138 GMT,
after gaining over 1 percent in the previous session. 
    * Wheat was up 0.3 percent at $5.08 a bushel after the
previous session's 0.7 percent increase, while corn
slipped 0.1 percent to $3.75-1/2 a bushel after edging up 0.2
percent yesterday.
    * Farmers expect soybean yields and output in Mato Grosso,
Brazil's largest producing state, to be hit by scarce rains in
December. Dry weather and high temperatures are also
accelerating the soybean cycle, leading some growers to
anticipate harvesting even at the risk of lowering yields.

    * Wheat futures rose from multi-month lows on short-covering
and concerns about excessive rains in Argentina.
    * Traders are optimistic about easing trade tensions between
China and the United States and the prospect that China could
buy more U.S. soybeans as a trade delegation heads to Beijing
for talks on Jan. 7.
    * The U.S. Department of Agriculture will decide on Friday
whether to delay a slew of key crop reports scheduled for
release on Jan. 11. A partial government shutdown has prompted
the USDA to suspend daily and weekly export sales reports.

            
    MARKET NEWS
    * Weak Chinese and European economic data weighed on stocks
around the world and boosted safe-haven Treasuries and the
Japanese yen on Wednesday, though Wall Street shares edged
higher as investors took advantage of cheaper shares to ring in
the new year.
    * The Japanese yen soared in early Asian trading on Thursday
as the break of key technical levels triggered massive stop-loss
sales of the U.S. and Australian dollars in very thin markets.

    * Oil prices fell by more than one percent on Thursday amid
volatile currency and stock markets, and as analysts warned of
an economic slowdown for 2019.
    * Wall Street edged nominally higher on Wednesday after
stumbling out of the starting gate on the first trading day of
the new year, as fears of a global economic slowdown were
exacerbated after Apple Inc cut its current quarter revenue
forecast.
    
 Grains prices at 0138 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  508.00  1.25     +0.25%   -0.68%       517.31  42
 CBOT corn   375.50  -0.25    -0.07%   +0.00%       378.13  48
 CBOT soy    908.00  1.00     +0.11%   +1.40%       906.74  55
 CBOT rice   10.35   $0.00    +0.00%   +0.39%       $10.70  21
 WTI crude   45.90   -$0.64   -1.38%   +1.26%       $49.89  
 Currencies                                                 
 Euro/dlr    $1.135  -$0.009  -0.76%   -0.70%               
 USD/AUD     0.6920  -0.012   -1.72%   -1.61%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Emily Chow; editing by Richard Pullin)
  
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