July 16, 2018 / 1:45 AM / 3 months ago

GRAINS-Soybeans rebound from near 10-year low, trade war tensions cap gains

    SYDNEY, July 16 (Reuters) - U.S. soybeans on Monday recovered from their lowest in nearly a decade, though gains were curbed by concerns that the
U.S.-China trade war will dent exports and lead to a build-up in stocks.
            
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of Trade were up 0.5 percent at $8.38-1/2 a bushel, as of 0100 GMT. In the previous
session, soybean futures closed down 1.8 percent, after hitting $8.26-3/4 a bushel, their lowest since December 2008.
    * The most active corn futures slipped 0.3 percent to $3.53-3/4 a bushel, having closed down 1.3 percent in the previous session.
    * The most active wheat futures lost 0.5 percent to $4.94-3/4 a bushel, having closed 2.6 percent higher on Friday. 
    * Trade war tensions between the United States and China remained a drag on grain complex.
    * China's soybean imports in June jumped 13.1 percent from a year ago as buyers scooped up Brazilian supplies to avoid potentially higher costs on
U.S. shipments.
    * The U.S. Department of Agriculture (USDA) last week slashed its U.S. export forecast for the 2018-19 season by 250 million bushels and projected
end-of-season stocks at the highest on record.
    * Corn was pressured by forecast for rain and milder temperatures in the Midwest following above-normal heat over the weekend. Much of the crop is
entering pollination, a development stage when stressful weather can hurt yields.
         
    MARKET NEWS  
    * Major currencies held around recent ranges on Monday thanks to a lull in China-U.S. trade skirmishing and as investors await key data from the
world's two biggest economies to determine whether global growth is running out of puff.  
    * Oil prices fell on Monday as concerns about supply disruptions eased and Libyan ports resumed export activities, while traders eyed potential
supply increases by Russia and other oil producers.  
    * U.S. stocks rose slightly on Friday, putting the S&P 500 at its highest closing level in more than five months, as gains in industrials and other
areas offset a drop in financials after results from three of the big banks mostly disappointed.  
        
 Grains prices at 0100 GMT
 Contract       Last   Change   Pct chg  Two-day chg   MA 30  RSI
 CBOT wheat   494.75    -2.25    -0.45%       +2.12%  506.13   53
 CBOT corn    353.75    -1.00    -0.28%       -1.53%  377.18   46
 CBOT soy     838.50     4.25    +0.51%       -1.27%  915.01   31
 CBOT rice     12.00    $0.01    +0.08%       +0.63%  $11.78   55
 WTI crude     70.85   -$0.16    -0.23%       +0.74%  $69.11   45
 Currencies                                                      
 Euro/dlr     $1.169   $0.000    +0.00%       +0.12%             
 USD/AUD      0.7427    0.000    +0.05%       +0.28%             
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham, Editing by Sherry Jacob-Phillips)
  
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