January 10, 2019 / 2:48 AM / 6 months ago

GRAINS-U.S. soybeans edge lower, market eyes Chinese purchases

    * Chicago soybeans ease after closing higher on Wednesday
    * Market eyes Chinese purchases of U.S. beans as trade talks
end
    * Wheat dips after two sessions of gains, corn falls

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Jan 10 (Reuters) - Chicago soybean futures slid
on Thursday, giving up some of last session's gains, although
losses were limited on optimism the United States and China may
be inching toward a trade deal, soothing fears of an all-out
trade war.
    Wheat eased after two sessions of gains while corn edged
lower after gaining around half a percent on Wednesday.
    The most-active soybean contract on the Chicago Board Of
Trade gave up 0.2 percent to trade at $9.22 a bushel as of
0215 GMT, having firmed 0.6 percent on Wednesday.
    Wheat dipped 0.1 percent to $5.19-3/4 a bushel, having
closed up 0.4 percent on Wednesday, and corn slipped 0.2
percent to $3.81-1/4 a bushel, having gained 0.5 percent in the
previous session.
    "Beans are under a bit of pressure after gaining ground in
the last session on hopes of China making further purchases,"
said Phin Ziebell, agribusiness economist at National Australia
Bank.
    "The market is keen to see Chinese purchases actually take
place before any further gains."
    China's commerce ministry said on Thursday trade talks with
the United States this week were extensive and detailed, and
established a foundation for the resolution of each other's
concerns.
    The three-day talks in Beijing that wrapped up on Wednesday
were the first face-to-face negotiations since U.S. President
Donald Trump and his Chinese counterpart Xi Jinping met in
Buenos Aires in December and agreed a 90-day truce in a trade
war that has disrupted the flow of hundreds of billions of
dollars of goods.
    The U.S. Trade Representative's office said on Wednesday
that China had pledged to purchase "a substantial amount" of
agricultural, energy and manufactured goods and services from
the United States.
    Brazil's 2018/19 soybean production is likely to be slightly
lower than earlier estimates.  
    Consultancy AgRural slashed its Brazilian soy crop estimate
on Wednesday to 116.9 million tonnes, from 121.4 million tonnes
previously, citing poor weather in southern Brazil.
    The wheat market is coming under pressure, as disappointment
over Egypt's purchase of only Russian wheat in a tender is
weighing on the market. 
    Egypt's state grain buyer, the General Authority for Supply
Commodities, bought 415,000 tonnes of Russian wheat in
international purchase tender on Wednesday, traders said.
    France's farming agency on Wednesday trimmed its forecast
for wheat exports outside the EU this season, cautioning that
competition would continue to be tough in key North and West
African markets.
    
 Grains prices at 0215 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  519.75  -0.25   -0.05%   +0.58%       518.68  60
 CBOT corn   381.25  -0.75   -0.20%   -0.26%       379.80  60
 CBOT soy    922.00  -2.00   -0.22%   -0.24%       911.81  61
 CBOT rice   10.79   -$0.01  -0.14%   +1.17%       $10.67  66
 WTI crude   51.80   -$0.56  -1.07%   +6.76%       $49.19  
 Currencies                                                
 Euro/dlr    $1.155  $0.016  +1.38%   +1.39%               
 USD/AUD     0.7155  0.004   +0.60%   +2.14%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Shreejay Sinha)
  
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