November 22, 2019 / 2:12 AM / 24 days ago

GRAINS-Soybeans set for third weekly decline on U.S.-China trade woes

    SINGAPORE, Nov 22 (Reuters) - Chicago soybean futures were on track on Friday for a third
weekly loss as uncertainty over progress in the U.S.-China trade negotiations weighed on the
market.
    Wheat is set for a positive finish this week - its first in a month - as expectations of lower
production in the Southern Hemisphere supported prices.
    
    FUNDAMENTALS  
    * The most-active soybean contract on the Chicago Board Of Trade is down almost 2% this
week, taking the losses in three weeks to almost 4%.
    * Wheat is set to end the week with a gain of nearly 2%, having lost ground for the last
four weeks, while corn is down 0.7% this week, poised for a third weekly decline. 
    * Completion of a "phase one" U.S.-China trade deal could be delayed until next year, Reuters
reported on Wednesday, citing trade experts and people close to the White House.
    * China will strive to reach an initial trade agreement with the United States as both sides
keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to
allay fears talks might be unravelling.
    * Still, China continued its purchases of U.S. soybeans, pork and beef even as negotiators
struggled to hammer out details of the first phase of a potential trade deal between the two
countries, according to government data released on Thursday.
    * Weekly declines in soybean and corn prices come despite strong demand for U.S. supplies.
    * The U.S. Department of Agriculture (USDA) reported weekly U.S. soybean export sales at more
than 1.5 million tonnes, topping trade expectations.
    * The USDA reported weekly export sales of corn for the current marketing year at 788,000
tonnes, up 49% from the prior four-week average.
    * Through its daily reporting system, the USDA said private exporters sold 106,000 tonnes of
U.S. corn to unknown destinations, the third such sale announced this week.
    * The International Grains Council said on Thursday the world's wheat area for the 2020/21
season is expected to expand by 1%.
     * Argentina is set to dominate Asia's grain market for a second consecutive year in 2020, with
trading companies already buying significant volumes anticipating first-quarter demand in the
region as drought curbs output in traditional export powerhouse Australia, trade sources said.

    
    MARKET NEWS 
    * Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but
gains were capped by persistent worries over the status of trade negotiations between China and the
United States.
    
    DATA/EVENTS (GMT)
0700  Germany   GDP Detailed QQ SA, YY NSA          Q3
0815  France    Markit Mfg, Serv, Comp Flash PMIs   Nov
0830  Germany   Markit Mfg, Serv, Comp Flash PMIs   Nov
0900  EU        Markit Mfg, Serv, Comp Flash PMIs   Nov
1445  US        Markit Mfg, Serv, Comp Flash PMIs   Nov
1500  US        U Mich Sentiment Final              Nov
    
 Grains prices at 0154 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  512.25  0.25    +0.05%   -1.21%       516.40  48
 CBOT corn   368.25  -0.25   -0.07%   +0.41%       381.87  33
 CBOT soy    901.00  0.00    +0.00%   -0.44%       930.94  35
 CBOT rice   12.25   $0.00   +0.00%   +1.20%       $12.03  80
 WTI crude   58.27   -$0.31  -0.53%   +2.03%       $55.89  
 Currencies                                                
 Euro/dlr    $1.106  $0.001  +0.06%   -0.07%               
 USD/AUD     0.6794  0.001   +0.15%   -0.12%               
 
 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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