May 21, 2018 / 12:55 AM / a month ago

GRAINS-U.S. soybeans jump 2 percent after U.S.-China trade deal

    SYDNEY, May 21 (Reuters) - U.S. soybeans rose more than 2
percent on Monday after the United States and China agreed to
drop tariff threats, easing fears about demand for North
American oilseeds.
    The most active soybean futures on the Chicago Board Of
Trade were up 2.2 percent at $10.20-3/4 a bushel by 0030
GMT, having firmed 0.4 percent on Friday.
    Wheat rose 1.2 percent to hit a two-week high, while corn
jumped 1 percent.
    Analysts said the market was drawing comfort from an easing
of tensions between the United States and China.
    "The U.S. and China have reached some sort of an agreement
because, as much they perhaps do not like one another, they are
each too big to ignore," said Tobin Gorey, director of
agricultural strategy, Commonwealth Bank of Australia.
    The U.S. trade war with China is "on hold" after the world's
largest economies agreed to drop their tariff threats while they
work on a wider trade agreement, U.S. Treasury Secretary Steven
Mnuchin said on Sunday.
    In April, China proposed a 25 percent tariff on U.S.
soybeans as part of its response to Washington's plans to impose
tariffs on a range of Chinese products, stoking market fears
that the world's largest oilseed buyer would shift to South
American suppliers.
    The most active corn futures were up 1.1 percent to
$4.06-3/4 a bushel, having gained 1.8 percent in the previous
session.
    The most active wheat futures were up 1.2 percent to 
$5.24-1/4 a bushel, having closed up 4.1 percent on Friday. 
    Wheat also drew support as dry conditions are set to linger
across the U.S. Plains, threatening further damage to an already
parched crop.
        
 Grains prices at  0030 GMT
 Contract       Last   Change  Pct chg  Two-day chg    MA 30  RSI
 CBOT wheat   524.25     6.00   +1.16%       +5.38%   501.33   63
 CBOT corn    406.75     4.25   +1.06%       +2.91%   398.00   67
 CBOT soy    1020.75    22.25   +2.23%       +2.59%  1035.68   54
 CBOT rice     12.36    $0.03   +0.28%       -1.12%   $12.94   40
 WTI crude     71.64    $0.36   +0.51%       +0.21%   $68.95   68
 Currencies                                                      
 Euro/dlr     $1.175  -$0.002   -0.19%       -0.34%              
 USD/AUD      0.7513    0.000   +0.03%       +0.05%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; editing by Richard Pullin)
  
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