September 25, 2019 / 4:24 AM / 3 months ago

GRAINS-Soybeans set for third day of gains on Chinese buying; wheat falls

    * Soybeans gain more ground on Chinese quotas to buy U.S.
    * Prolonged U.S.-China trade war caps in gains in soybean

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 25 (Reuters) - Chicago soybeans rose for a
third consecutive session on Wednesday, buoyed by China's move
to give waivers to buy some U.S. soybeans exempt from tariffs,
but the ongoing trade war between the two countries kept gains
in check.
    Wheat slid for a fifth session, as abundant supplies from
the Northern Hemisphere harvest weighed on the market.
    The most-active soybean contract on the Chicago Board Of
Trade was up 0.2% at $8.96 a bushel as of 0355 GMT, after
closing 0.2% higher in the previous session.
    Wheat slid 0.1% at $4.81-1/4 a bushel and corn
added 0.5% at $3.76-3/4 a bushel.
    "Chinese buying is supporting the market although it is just
a short-term support as concerns remain about the trade war,"
said Phin Ziebell, agribusiness economist, National Australia
    China has given new waivers to several importers to buy U.S.
soybeans exempt from retaliatory tariffs, in a goodwill gesture
ahead of high-level trade talks next month, two sources familiar
with the matter said.
    The waivers, offered in two batches, totalled around 5
million to 6 million tonnes, according to one of the sources.
    U.S. President Donald Trump sharply criticized China's trade
practices on Tuesday in an address at the U.N. General Assembly.
Trump also held out hope that the two economic superpowers could
reach a deal to end their trade dispute. 
    The Commodity Weather Group said a frost was possible late
next week in the northern Plains and northwest Midwest, posing a
"limited threat" to 10% to 15% of corn and soybean crops.
    The U.S. agriculture department said on Monday afternoon
that 22% of U.S. winter wheat had been planted, up sharply from
8% last week. Some 87% of U.S. spring wheat was harvested,
topping market expectations.
    Ample wheat supplies from the Black Sea region are posing
stiff competition in the market.
    Ukraine's grain exports have risen to about 12.4 million
tonnes so far in the 2019/20 July-June export season, up from
8.3 million tonnes over the same period last year, the
agriculture ministry said on Tuesday.
    The focus is on a wheat tender set by Egypt, the world's top
importer, to buy an unspecified amount of wheat from global
suppliers for shipment from Oct. 26 to Nov. 5.
    Concerns remain about the Southern Hemisphere wheat crop.
    A lack of rainfall and late frosts over Argentina's main
wheat-producing region are already leading to drop in crop
yields, the Rosario grains exchange said on Tuesday.

    Argentina, a key global wheat exporter, had reported 6.87
million hectares (17 million acres) of growth in the planting
area for the 2019/20 season.
    Commodity funds were net buyers of CBOT corn, soybean,
soyoil and soymeal futures contracts on Tuesday, traders said.
They were net sellers of wheat.              
 Grains prices at 0355 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  481.25  -0.50    -0.10%   -0.36%       476.00  50
 CBOT corn   376.75  2.00     +0.53%   +0.94%       368.26  73
 CBOT soy    896.00  1.75     +0.20%   +0.39%       876.20  66
 CBOT rice   11.97   -$0.04   -0.29%   -0.79%       $11.85  46
 WTI crude   56.95   -$0.34   -0.59%   -2.88%       $56.40  
 Euro/dlr    $1.100  -$0.002  -0.15%   +0.09%               
 USD/AUD     0.6788  -0.001   -0.16%   +0.22%               
 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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