December 5, 2018 / 3:11 AM / 5 months ago

GRAINS-Soybeans rise for fourth session; trade war woes cap gains

    * Soybeans edged higher, trade tensions cap gains 
    * Wheat falls on lack of demand for U.S. supplies, corn down

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Dec 5 (Reuters) - Chicago soybeans ticked higher
on Wednesday with the market in positive territory for the
fourth straight session, but trade tensions between Washington
and Beijing capped the gains.
    U.S. President Donald Trump has agreed to postpone new
tariffs during a 90-day truce, while his Chinese counterpart Xi
Jinping pledged to purchase more agricultural products from U.S.
farmers immediately.
    On Tuesday, however, Trump warned he would revert to tariffs
if the two sides could not resolve their differences.

    "There is uncertainty over the trade war, tensions have
resurfaced again with Trump's comments on tariffs," said Phin
Ziebell, senior economist at National Australia Bank.
    "But at least the two countries are talking about trade,
which is positive sign for the market."
    The most-active soybean contract on the Chicago Board Of
Trade added 0.1 percent to $9.12-3/4 a bushel by 0246 GMT,
having firmed 0.7 percent on Tuesday. 
    The market traded marginally lower earlier in the session.
    Wheat gave up 0.2 percent to $5.21-1/4 a bushel and
corn was down 0.2 percent at $3.84 a bushel.
    China will need to remove tariffs it imposed on U.S. farm
products, including soybeans, before it can realistically buy
substantial volumes of U.S. goods, Chinese traders said on
    Still, China's soymeal futures dropped for a fourth straight
session, as cautious investors hoped for a positive outcome of
trade talks between the two nations. 
    The most actively traded soymeal contract on Dalian
Commodity Exchange, for delivery in January, dropped 1.3
percent to 2,913 yuan per tonne, their lowest since March.

    There is additional pressure on soybeans stemming from
expectations of a record crop in top exporter Brazil.
    Brazilian farmers could produce between 123 million tonnes
and 130 million tonnes of soybeans in the 2018/19 crop cycle, a
historic record, Anderson Galvão, chief executive at
agribusiness consultancy Céleres, said on Tuesday.
    Other countries in South America are poised to collect a
large harvest, Galvão said at an industry event, indicating
benchmark prices were not likely to surpass $9 per bushel in
    Commodity funds were net buyers of CBOT corn, wheat,
soybean, soyoil and soymeal futures contracts on Tuesday,
traders said.
    A lack of demand kept pressure on the U.S. wheat market. 
    Ukraine said on Tuesday it had resumed grain shipments from
the Azov Sea, blocked for around 10 days after a military
standoff with Russia in the Kerch Strait off Crimea.
    Russia seized three Ukrainian naval ships and their crews on
Nov. 25 after opening fire on them, accusing them of illegally
entering its territorial waters.

 Grains prices at 0246 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  521.25  -1.25   -0.24%   +1.07%       512.71  70
 CBOT corn   384.00  -0.75   -0.19%   +1.65%       377.49  68
 CBOT soy    912.75  1.00    +0.11%   +2.01%       878.52  73
 CBOT rice   10.96   -$0.02  -0.18%   +0.64%       $10.79  59
 WTI crude   52.70   -$0.55  -1.03%   +3.48%       $58.76  
 Euro/dlr    $1.133  $0.002  +0.14%   -0.53%               
 USD/AUD     0.7311  0.000   -0.05%   -0.10%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Rashmi Aich)
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