* Wheat gains, supported by lower U.S. winter crop planting
* Soybeans tick higher after dropping to lowest since Sept 30
(Adds quote in paragraph 8-9, updates prices)
By Naveen Thukral
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 edged higher, but the market was trading not far from Friday's eight-week low, weighed
down by doubts over a U.S.-China trade deal and improved weather in South America.
The most-active wheat contract on the Chicago Board Of Trade (CBOT) was up 0.2% at
$5.19-3/4 a bushel, as of 0201 GMT.
Soybeans added 0.1% to $8.97-1/2 a bushel after hitting their lowest since Sept. 30 at
$8.96 a bushel on Friday, while 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.
"U.S. China trade negotiations are still going on," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia.
"A few events over the weekend are worth noting. China's Foreign Minister (at G20 summit)
expressed China's irritation with the U.S., labelling the U.S. 'the world’s biggest destabilising
factor.' The U.S. is clearly succeeding in disrupting China."
Reports last week suggested that the initial deal could be delayed to 2020.
U.S. President Donald Trump, however, 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.
Grains prices at 0201 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 519.75 1.00 +0.19% +0.24% 516.65 57
CBOT corn 368.75 0.00 +0.00% +0.55% 381.88 33
CBOT soy 897.50 0.50 +0.06% -0.83% 930.83 33
CBOT rice 12.18 $0.00 +0.00% +0.66% $12.03 66
WTI crude 57.88 $0.11 +0.19% -1.19% $56.01
Currencies
Euro/dlr $1.102 $0.000 +0.00% -0.32%
USD/AUD 0.6798 0.001 +0.18% +0.21%
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 and Sherry Jacob-Phillips)
