December 4, 2019 / 4:18 AM / 5 days ago

GRAINS-Wheat drops for third session on supply pressure, soybeans tick higher

    * Chicago wheat futures drop to lowest in more that a week
    * World supplies remain ample despite Australian drought
    * Corn futures fall for 2nd session, soybeans edge higher

 (Adds quote in paragraphs 5-6, updates prices)
    By Naveen Thukral
    SINGAPORE, Dec 4 (Reuters) - Chicago wheat futures fell for
a third consecutive session on Wednesday, dropping to their
lowest in more than a week on pressure from ample world
supplies.
    Corn fell for a second session, while soybean edged higher
although gains were limited by U.S. President Donald Trump
comments that a trade deal with China might have to wait until
after the 2020 presidential election.
    The most-active wheat contract on the Chicago Board Of Trade
 was down 0.4% at $5.23 a bushel, as of 0354 GMT, hovering
near a session low of $5.22-1/2 - the weakest since Nov. 25. 
    Soybeans were up 0.1% at $8.72 a bushel and corn
was down 0.2% at $3.80-1/2 a bushel.
    "The rally in wheat prices was overdone and not really
connected to global prices," said Ole Houe, director of advisory
services at brokerage IKON Commodities in Sydney.
    "World supplies remain plentiful despite the Australian
drought and at the moment the task of the world market is to
simply chew through stocks."
    U.S. wheat still faces stiff competition from suppliers in
the Black Sea region. 
    Egypt's state grain buyer GASC said on Tuesday it bought
295,000 tonnes of Russian wheat at its latest international
purchasing tender.
    Corn is facing pressure from losses in the wheat market but
U.S. harvest delays are providing a floor under the market.
    In its weekly crop progress report on Monday afternoon, the
U.S. Department of Agriculture said 89% of U.S. corn was
harvested, up just 5 percentage points from a week earlier and
compared with the five-year average of 98%.
    Trump told reporters in London that there is "no deadline"
for an agreement with Beijing to end the tit-for-tat tariff war,
dashing hopes of a boost in U.S. soybean sales to China, the
world's top importer.
    Brazil's 2019/2020 soybean crop, in the final phase of
planting, could reach a record 122.7 million tonnes, according
to the average forecast in a Reuters survey with 16 market
analysts, which would be up 6.7% from the government's estimate
for the previous season.
    Commodity funds were net sellers of CBOT wheat and corn
futures contracts on Tuesday, traders said. They were net buyers
of CBOT soybeans, soymeal and soyoil.

 Grains prices at 0354 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  523.00  -2.25   -0.43%   -3.46%       518.63  55
 CBOT corn   380.50  -0.75   -0.20%   -0.20%       387.18  49
 CBOT soy    872.00  1.00    +0.11%   -0.54%       916.93  20
 CBOT rice   12.29   -$0.04  -0.36%   -1.56%       $12.07  59
 WTI crude   56.51   $0.41   +0.73%   +2.43%       $56.58  
 Currencies                                                
 Euro/dlr    $1.108  $0.006  +0.57%   +0.65%               
 USD/AUD     0.6829  0.007   +0.96%   +0.90%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Sriraj Kalluvila)
  
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