September 23, 2019 / 3:41 AM / a month ago

GRAINS-Soybeans tick higher; concerns over prolonged trade war cap gains

    * Soybean futures rise, recoup some of last session's losses
    * Chinese officials cancel visit to U.S. farms, raise

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 23 (Reuters) - Chicago soybean futures rose
on Monday, recouping last session's losses, but fears of a
protracted U.S.-China trade war capped gains.
    Wheat edged higher as concerns over wet weather in North
America providing a floor under the market.
    The most-active soybean contract on the Chicago Board of
Trade (CBOT) added 0.9% to $8.90-1/4 a bushel by 0310 GMT,
having closed down 1.1% on Friday.
    Wheat was up 0.2% at $4.85 a bushel, after ending down
0.8% on Friday and corn gained 0.5% at $3.72-3/4 a bushel,
after closing down 0.5% in the previous session.
    A U.S.-China trade deal appeared elusive on Friday after
Chinese officials unexpectedly cancelled a visit to farms in
Montana and Nebraska as deputy trade negotiators wrapped up two
days of negotiations in Washington.
    "(There were) a couple of minor negative developments in the
U.S.-China trade dispute on Friday," said Tobin Gorey, director
of agricultural strategy, Commonwealth Bank of Australia.
    "Perhaps adding to the concern was China cancelling a visit
to some U.S. farms."
    U.S. and Chinese deputy negotiators held "productive" talks
in Washington last week aimed at improving their trade
relationship, the U.S. Trade Representative's office said on
Friday without offering further details.
    In the wheat market, there were concerns over wet weather
for the spring crops in North America. 
    Excessively wet conditions in the northern U.S. Plains and
Canadian Prairies have hurt the quality of the region's spring
and durum wheat crops, potentially tightening supplies of top
grades of the grains, handlers and agronomists said.

    Rains and heavy dew have slowed the harvest and caused
mature, un-harvested wheat kernels in some areas to begin to
sprout, severely damaging quality and triggering steep discounts
from grain buyers of $1 or more per bushel.
    Large speculators increased their net short position in CBOT
corn futures in the week to Sept. 17, regulatory data released
on Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and trimmed their net short
position in soybeans.
 Grains prices at 0310 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  485.00  0.75    +0.15%   -0.61%       475.89  59
 CBOT corn   372.75  2.00    +0.54%   +0.00%       368.83  67
 CBOT soy    890.25  7.50    +0.85%   -0.31%       875.39  61
 CBOT rice   12.24   -$0.08  -0.65%   -1.05%       $11.85  68
 WTI crude   58.64   $0.55   +0.95%   +0.88%       $56.32  
 Euro/dlr    $1.102  $0.001  +0.05%   -0.15%               
 USD/AUD     0.6777  0.001   +0.13%   -0.18%               
 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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