October 23, 2019 / 3:51 AM / 25 days ago

GRAINS-Soybeans rise on China demand prospects; wheat, corn firm

    * Soybean futures gain for 2nd session on talk of China
quotas
    * Wheat rises after 2 days of decline, corn firms

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Oct 23 (Reuters) - Chicago soybean futures rose
for a second session on Wednesday with expectations of renewed
Chinese purchases supporting the market.
    Wheat gained after two days of losses, while corn also rose.
    The Chicago Board of Trade most-active soybean contract
 rose 0.4% to $9.37-3/4 a bushel by 0334 GMT, wheat
added 0.3% to $5.19-1/2 a bushel and corn gained 0.3% at
3.89-1/4 a bushel.
    Beijing on Tuesday offered major Chinese and international
soybean processors waivers that would exempt the companies from
steep tariffs on imports of up to 10 million tonnes of U.S.
soybeans, according to two people briefed on the matter.
    The waivers, however, failed to unleash a flood of immediate
buying as U.S. prices remained too high, according to U.S.
export traders. Market conditions have continued to determine
Chinese buying in recent weeks despite U.S. President Donald
Trump's assurances of a wave of imminent sales.
    "There is talk of Chinese buying which is supportive for
prices, but the upside potential is limited," said one
Singapore-based grains trader. "China's soymeal demand has been
hit by African swine fever."
    China's pig herd in September was 41.1% smaller than it was
a year earlier, the agriculture ministry said on Monday, as a
year-long African swine fever epidemic continued to slash the
world's largest herd.
    Forecasts for normal- to below-normal precipitation for a
large part of the U.S. farm belt over the next two weeks should
allow for more active harvesting in most areas.
    Drought across most Ukrainian regions is likely to reduce
the area sown in the 2020 winter grain harvest, the head of
Ukraine's state weather forecasting centre said on Tuesday.

    Ukraine and Russia, its main rival on Black Sea grain
exports, have been both looking for more rains this autumn. In
Russia, though, warm and rainy weather has speeded up sowing in
recent weeks.
    Commodity funds were net buyers of Chicago Board of Trade
corn, soybean and soyoil futures contracts on Tuesday and net
sellers of wheat and soymeal futures, traders said.

    
 Grains prices at 0334 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  519.50  1.50     +0.29%   -0.76%       497.30  60
 CBOT corn   389.25  1.25     +0.32%   +0.52%       382.96  51
 CBOT soy    937.75  3.75     +0.40%   +0.48%       911.98  68
 CBOT rice   11.70   $0.00    +0.00%   -0.81%       $11.99  35
 WTI crude   54.06   -$0.42   -0.77%   +1.41%       $55.07  
 Currencies                                                 
 Euro/dlr    $1.112  -$0.001  -0.05%   -0.27%               
 USD/AUD     0.6838  -0.002   -0.25%   -0.41%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips
and Shounak Dasgupta)
  
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