November 25, 2019 / 1:43 AM / 2 months ago

GRAINS-Wheat rises for 2nd session on lower U.S. planting; soybeans near 8-week low

    SINGAPORE, Nov 25 (Reuters) - Chicago wheat futures rose for
a second straight session on Monday, underpinned by lower
planting in the United States and a decline in Australia's
production.
    Soybeans traded near Friday's eight-week low, with the
market weighed down by doubts over a U.S.-China trade deal and
improved weather in South America.
    
    FUNDAMENTALS
    * The most-active wheat contract on the Chicago Board Of
Trade (CBOT) rose 0.4% to $5.20-3/4 a bushel by 0115 GMT.
    * Soybeans were unchanged at $8.97 a bushel after
hitting their lowest since Sept. 30 at $8.96 a bushel on Friday
and corn was flat at $3.68-3/4 a bushel. 
    * Wheat is being supported by short-covering coupled with
worries about a drop in U.S. wheat acres. 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.
    * U.S. farmers planted 45.2 million acres of wheat overall
for 2019, the fewest in U.S. Department of Agriculture records
dating to 1919.
    * The soybean market is facing pressure because of
uncertainty about prospects for a preliminary U.S. trade deal
with China, the top global soybean importer. 
    * Reports last week suggested that the initial deal could be
delayed to 2020.
    * But U.S. President Donald Trump told Fox News that a deal
was "potentially very close", adding to optimism following
remarks by Chinese President Xi Jinping that Beijing wanted to
work out an initial agreement.
    * There was additional pressure on the soybean market as
forecasts called for beneficial rains in crop areas of Brazil
and Argentina, the world's No. 1 and No. 3 producers. The United
States is the No. 2 soybean grower.
    * Soybean plantings for the new Brazilian crop (2019-20)
have reached 77.3% of the expected area to be planted with the
oilseed, a slower pace than seen last year and also lagging the
five-year average for the period.
    * Large speculators increased their net short position in
CBOT corn futures in the week to Nov. 19, regulatory data
released on Friday showed. 
    * The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and increased their net short
position in soybeans.
    
    MARKET NEWS
    * Asian shares made guarded gains as investors braced for
another week of likely conflicting commentary on the Sino-U.S.
trade dispute, while the outperformance of recent U.S. economic
data gave the dollar a leg up on its peers.
    
    DATA/EVENTS (GMT)
0900   Germany  Ifo Business Climate New   Nov
0900   Germany  Ifo Curr Conditions New    Nov
0900   Germany  Ifo Expectations New       Nov
    
 Grains prices at 0115 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  520.75  2.00    +0.39%   +0.43%       516.68  58
 CBOT corn   368.75  0.00    +0.00%   +0.55%       381.88  33
 CBOT soy    897.00  0.00    +0.00%   -0.88%       930.81  33
 CBOT rice   12.18   $0.00   +0.00%   +0.66%       $12.03  66
 WTI crude   57.81   $0.04   +0.07%   -1.31%       $56.01  
 Currencies                                                
 Euro/dlr    $1.102  $0.000  +0.01%   -0.31%               
 USD/AUD     0.6796  0.001   +0.15%   +0.18%               
 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)
  
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