November 30, 2018 / 3:19 AM / 10 months ago

GRAINS-Soybeans set for monthly gain; focus on G20 meeting

    * Soybeans poised for biggest monthly gain since July
    * Wheat market eyes first monthly gain in four months

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Nov 30 (Reuters) - Chicago soybeans ticked higher on Friday with the market poised
to end November with the biggest monthly gain since July amid caution ahead of U.S.-China trade
talks at the G20 meeting.
    Wheat is set for a monthly rise after finishing lower for the last three months, but gains are
being capped by lacklustre demand for U.S. supplies.
    The most-active soybean contract on the Chicago Board Of Trade rose more than 4 percent
in November, the biggest monthly gain since July.
    Wheat is up 1.5 percent in November, and corn has added almost 3 percent, its
second month of gains.
    Soybeans on tenterhooks ahead of a widely watched meeting 
between U.S. President Donald Trump and Chinese leader Xi Jinping on Saturday.
    Trump sent mixed signals about the prospects for a trade deal with China, saying an agreement
was close but he was not sure he wanted one.
    Commodity funds were net sellers of CBOT wheat, soybean, soyoil and soymeal futures contracts
on Thursday and net buyers of corn, traders said.
    "Investors likely still have a hefty short position in soybean futures. Investors might be
triggered to buy that back by the swing to neutral momentum," said Tobin Gorey, director of
agricultural strategy, Commonwealth Bank of Australia. 
    "Again, we suspect the price gains to be modest, or at least short-lived, given producers are
likely to still have plenty of soybeans to sell."
    U.S. Department of Agriculture reported weekly wheat export sales of 377,100 tonnes, in line
with trade expectations. 
    The market is expecting U.S. wheat exports to pick up next year as the Black Sea region runs
out of surplus supplies.
    In 2019, Russia may harvest 121 million tonnes of grain, 77.3 million tonnes of it wheat,
Andrey Sizov, the head of SovEcon agriculture consultancy, said on Thursday, citing preliminary
estimates.
    This year, Russia is expected to harvest 110 million tonnes of grain, 70 million tonnes of
wheat, according to SovEcon's earlier forecast.
    Weekly U.S. corn export sales of 1.266 million tonnes topped expectations. However, weakness in
soybean futures and sagging prices for corn-based ethanol hung over the market.

 Grains prices at 0301 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  507.75  0.00    +0.00%   +0.25%       512.73  44
 CBOT corn   373.00  -0.25   -0.07%   +4.63%       366.58  45
 CBOT soy    888.25  1.00    +0.11%   +1.46%       875.37  58
 CBOT rice   10.93   $0.01   +0.14%   +0.78%       $10.81  64
 WTI crude   51.50   $0.05   +0.10%   +2.41%       $59.87  
 Currencies                                                
 Euro/dlr    $1.140  $0.006  +0.50%   -0.09%               
 USD/AUD     0.7318  0.008   +1.16%   +0.88%               
 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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