June 21, 2018 / 2:51 AM / in 5 months

GRAINS-Wheat rises for second day on supply concerns, soybeans ease

    * Wheat gains ground as global supply expected to shrink
    * Soybeans ease as U.S.-China trade tensions weigh

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, June 21 (Reuters) - U.S. wheat futures rose for a
second session on Thursday as the market was supported by dry
weather reducing production in top exporters Russia and
Australia.
    Soybeans ticked lower as U.S.-China trade dispute is adding
pressure on the market, which dropped to its lowest in almost 10
years on Tuesday.
    The most-active wheat contract on the Chicago Board of
Trade gained 0.1 percent to $4.99-3/4 a bushel by 0230 GMT after
rising more than 2 percent in the last session.
    Soybeans eased 0.1 percent to $8.89 a bushel while
corn gave up 0.3 percent to $3.53-1/4 a bushel.
    Wheat futures are being supported by dry weather cutting
production in Russia, the world's biggest exporter, and
Australia, the No.4 supplier.
    Dryness in Russia and Australia comes after lack of rains
reduced production of Hard Red Winter wheat in the U.S. southern
Plains.
    "We expect the global wheat market to transition from
comfortable to balanced supply conditions during the 2018
season," said Tobin Gorey, director of agricultural strategy at
Commonwealth Bank of Australia.
    "Prices have now fallen to levels that we would think of as
the low compared to where we expect prices to be by season end."
     
    The soybean market is facing headwinds from escalation in
U.S.-China trade spat. 
    U.S. President Donald Trump has threatened to impose a 10
percent tariff on another $200 billion of Chinese goods. China's
commerce ministry described the threat as "blackmailing" and
said Beijing would fight back.
    Trump's threat followed his administration imposing tariffs
on $50 billion of Chinese goods last week, which triggered
retaliatory tariffs by Beijing on a slate of U.S. products,
including soybeans and corn. 
    Tuesday's sell-off in soybeans was also driven by generally
favourable weather in the Midwest crop belt that has bolstered
expectations for big U.S. corn and soy harvests.
    However, there is uncertainty about forecast for July and
August, which are crucial months for U.S. crop development.
    Commodity funds were net buyers of CBOT wheat and soyoil
futures contracts on Wednesday and net sellers of soybeans,
soymeal and corn, traders said.
    
 Grains prices at 0228 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  488.75  0.50    +0.10%   +2.30%       511.13  39
 CBOT corn   353.00  -1.25   -0.35%   -0.21%       385.28  24
 CBOT soy    888.75  -0.75   -0.08%   -0.03%       983.76  12
 CBOT rice   12.60   -$0.05  -0.40%   +3.19%       $12.00  63
 WTI crude   65.69   -$0.02  -0.03%   +0.95%       $68.06  46
 Currencies                                                
 Euro/dlr    $1.157  $0.000  +0.02%   -0.14%               
 USD/AUD     0.7377  0.001   +0.14%   -0.05%               
 
 
 
        

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips
and Gopakumar Warrier)
  
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