December 7, 2018 / 1:20 AM / 3 months ago

GRAINS-Soybeans set for 2nd weekly gain on U.S.-China trade deal hopes

    SINGAPORE, Dec 7 (Reuters) - Chicago soybean futures rose on Friday, poised for their second
weekly gain, after authorities in China said they were hopeful for a trade deal with the United
States. 
    
    FUNDAMENTALS
    * China on Thursday expressed confidence in striking a trade deal with the United States within
their 90-day ceasefire period, praising the recent meeting between U.S. President Donald Trump and
Chinese President Xi Jinping as highly successful.
    * The market came under pressure on Thursday on concerns over Sino-U.S. relations after the
arrest of smartphone maker Huawei Technologies Chief Financial Officer Meng Wanzhou, which
threatened to freeze talks on some form of trade truce.
    * Gains in the soybean market were capped by expectations of large production in South America.
    * Argentine soybean exports to China could jump to a record 14 million tonnes this season if
the trade war between China and the United States continues, the Rosario grains exchange said on
Thursday, as output rebounds from last year's drought. 
    * There are forecasts of record soybean production in Brazil which is expected to reduce
China's need for U.S. cargoes.
    * The U.S. Department of Agriculture confirmed private corn sales to Mexico totalling nearly
200,000 tonnes on Thursday.
    * Egypt's GASC bought 350,000 tonnes of Russian and Ukrainian wheat in the tender. There was no
U.S. wheat offered. 
    * Commodity funds were net sellers of Chicago Board of Trade corn, wheat, soybean, soymeal and
soyoil futures contracts on Thursday, traders said.  
    
    MARKET NEWS
    * Asian share markets tried to find their footing on Friday as speculation the Federal Reserve
might be "one-and-done" with U.S. rate hikes helped salve some wounds after a punishing week. 

    
    DATA AHEAD (GMT)
0700  Germany              Industrial output     Oct
0745  France               Industrial output     Oct
0745  France               Trade data            Oct
1000  Euro zone            Revised GDP            Q3
1000  Euro zone            Employment             Q3
1330  U.S.                 Nonfarm payrolls      Nov
1330  U.S.                 Unemployment rate     Nov
1500  U.S.   Univ of Michigan sentiment index    Dec
1500  U.S.                 Wholesale sales       Oct
    
 Grains prices at 0106 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  515.75  0.25    +0.05%   -1.29%       513.08  46
 CBOT corn   382.50  -0.25   -0.07%   -0.58%       377.71  62
 CBOT soy    910.50  1.00    +0.11%   -0.14%       881.49  69
 CBOT rice   10.83   $0.00   +0.00%   -1.32%       $10.78  50
 WTI crude   51.54   $0.05   +0.10%   -2.55%       $57.29  
 Currencies                                                
 Euro/dlr    $1.137  $0.003  +0.23%   +0.16%               
 USD/AUD     0.7230  -0.011  -1.46%   -1.70%               
 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)
  
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