November 26, 2019 / 4:10 AM / 20 days ago

GRAINS-Soybeans tick up on trade optimism, wheat eases for 1-month peak

    * Soybeans rebound from two-month low on U.S-China trade comments
    * Wheat eases after short-covering rally to one-month high

 (Recasts to lead with soybeans, adds quote in paragraph 5)
    By Naveen Thukral
    SINGAPORE, Nov 26 (Reuters) - Chicago soybeans futures edged higher on Tuesday as the market
took a breather after four sessions of losses amid optimism over trade talks between Washington and
Beijing.
    Wheat slid, giving up some of the previous session's gains that drove the market to its highest
in more than a month on potentially tighter world supplies.
    The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.1% at
$8.93-3/4 a bushel, as of 0350 GMT, while corn gave up 0.1% to $3.70 a bushel.
    Wheat lost 0.3% to $5.31-1/2 a bushel, after hitting its highest since Oct. 21 at
$5.34-3/4 a bushel on Monday. 
    "There is some optimism on the trade front but it is hard to make a prediction where that might
end up. We will have to wait and see what happens," said Phin Ziebell, agribusiness economist at
National Australia Bank.
    "We are a bit sceptical about the rally in wheat prices as the global market is not in a
situation of a supply constraint."
    China and the United States are "moving closer to agreeing" on a "phase one" trade deal, the
Global Times, a tabloid run by the ruling Communist Party's official People's Daily, reported on
Sunday.
    But the report noted that Washington and Beijing had not agreed on specifics or size of
rollbacks of tariffs on Chinese goods. Beijing's insistence that Washington roll back the Trump
administration's tariffs has been a major sticking point.
    Chinese buyers scooped up at least 20 cargoes of Brazilian soybeans last week as uncertainty
over a trade deal with the United States sent them rushing to lock in supplies, traders said on
Monday.
    In the wheat market, there has been support in recent days on a mix of fund-driven
short-covering and supportive fundamentals, including rising cash values for U.S. and Russian
supplies, wet weather in Europe and fears of a decline in U.S. acreage.
    The slow pace of the U.S. corn and soybean harvest this autumn may have limited the number of
winter wheat acres planted for harvest in 2020.
    Analysts also noted weather issues, including dry conditions in Russia and excessive moisture
elsewhere.
    After the CBOT closed on Monday, the U.S. Department of Agriculture rated 52% of the U.S. winter
wheat crop in good to excellent condition, unchanged from a week earlier. Analysts surveyed by
Reuters on average had expected a decline of 1 percentage point.
    Commodity funds were net buyers of CBOT corn and wheat contracts on Monday and net sellers of
soyoil, soybean and soymeal futures, traders said.
    
 Grains prices at 0350 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  531.50  -1.50    -0.28%   +3.81%       517.20  67
 CBOT corn   370.00  -0.50    -0.13%   +0.41%       380.96  40
 CBOT soy    893.75  1.25     +0.14%   -0.80%       928.73  30
 CBOT rice   12.20   $0.01    +0.04%   -0.37%       $12.03  71
 WTI crude   57.96   -$0.05   -0.09%   -1.06%       $56.02  
 Currencies                                                 
 Euro/dlr    $1.101  -$0.001  -0.07%   -0.39%               
 USD/AUD     0.6781  0.000    -0.07%   -0.04%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
  
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