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Naveen Thukral

GRAINS-Corn set for 2nd week of gains on U.S. planting delays

24 May 2019

* Corn gains over 11% in 2 weeks, biggest since 2017 * Rains set to further delay planting across U.S. Midwest (Adds details, quote) By Naveen Thukral SINGAPORE, May 24 Chicago corn futures rose on Friday with the market gaining for nine out of 10 sessions as prices were underpinned by planting delays across the U.S. Midwest. Wheat slid for a third consecutive session as expectations of bumper winter crop harvest added pressure on prices. The most-active corn contract on the Chicago Board of Trade is up 2% this week, extending two-week gains to more than 11%. Corn this week hit its highest since June at $3.99 a bushel. Wheat is down for the third session in a row although the market is up 0.6% this week, its second straight weekly gain. Soybeans were little changed for the week, after closing up 1.5% percent last week. Corn prices have drawn support this week amid concerns that ongoing adverse weather will further delay U.S. plantings of the grain, forcing U.S. farmers to sow soybeans. The Trump administration on Thursday unveiled a $16 billion farm aid package to offset losses from a 10-month trade war with China and said payment rates to farmers would be determined by where they farm rather than what crops they grow. The package, the bulk of which will be spent on direct payments, surprised growers and traders who had expected to learn separate payment rates for soybeans, hogs, corn and other crops. "Turning to soybeans, the USDA's intention to make aid to U.S. farmers crop-neutral is a plus for beans," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. Short-covering by investment funds have supported agricultural market in recent weeks. Commodity funds were net sellers of Chicago Board of Trade corn, wheat soybean, soymeal and soyoil futures contracts on Thursday, traders said. Grains prices at 0349 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 468.00 -2.25 -0.48% -2.25% 449.40 62 CBOT corn 390.25 0.50 +0.13% -1.01% 369.03 72 CBOT soy 820.75 -0.75 -0.09% -0.15% 852.87 44 CBOT rice 11.56 $0.00 +0.04% +2.17% $10.83 93 WTI crude 58.57 $0.66 +1.14% -4.64% $62.80 Currencies Euro/dlr $1.118 $0.002 +0.22% +0.07% USD/AUD 0.6880 0.001 +0.17% -0.17% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Shreejay Sinha)

GRAINS-Wheat eases for 2nd session on supply pressure, corn little changed

23 May 2019

* Wheat falls for 2nd session after climbing to 3-month top * Corn unmoved, U.S. planting delays support prices (Adds details, quote) By Naveen Thukral SINGAPORE, May 23 Chicago wheat futures slid for a second session on Thursday with pressure from expectations of bumper production across much of northern hemisphere. Corn was largely unchanged after strong gains this week, underpinned by more rains in parts of the U.S. Midwest further delaying planting. The most active wheat contract on the Chicago Board of Trade lost 0.2% at $4.72 a bushel by 0259 GMT, after closing down more than 1% on Wednesday. Corn was unchanged at $3.94-1/2 a bushel and soybeans gave up 0.2% to $8.26-3/4 a bushel. "Wheat prices rose largely on the back of gains in the corn market," a Singapore-based grains trader said. "There are no bullish fundamentals with wheat as production in the Black Sea region and the United States is expected to be above average." Russia and Ukraine, dominant players in the global wheat trade, are expected to harvest near-record crops in the coming months. Heavy rain is expected this week in parts of the Midwest and Plains. It has rattled grain markets as it could compound corn planting delays after a soggy spring. The U.S. Department of Agriculture said on Monday that a lower-than-expected 49% of the U.S. corn crop has been planted, the slowest pace on record, based on data going back to 1980. Soybeans were 19% planted, also short of market expectations. The Trump administration is considering direct payments to U.S. farmers of $2 per bushel for soybeans as part of an aid package to offset the trade war with China, Bloomberg reported on Tuesday, an offer that could encourage more soy planting despite record supplies. The USDA, however, released a statement suggesting it was inaccurate. Commodity funds were net buyers of Chicago Board of Trade corn, soybean, soymeal and soyoil futures contracts on Wednesday and net sellers of wheat, traders said. Grains prices at 0259 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 472.00 -0.75 -0.16% -1.31% 449.24 68 CBOT corn 394.50 0.00 +0.00% +1.41% 368.38 81 CBOT soy 826.75 -1.75 -0.21% -0.60% 855.96 49 CBOT rice 11.34 $0.00 +0.00% +0.98% $10.79 90 WTI crude 61.10 -$0.32 -0.52% -3.00% $63.07 Currencies Euro/dlr $1.115 $0.000 -0.04% -0.19% USD/AUD 0.6873 0.001 +0.07% -0.28% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Rashmi Aich)

GRAINS-Corn gains for 8th session as rains stall U.S. corn planting

22 May 2019

* Corn trades near last session's 1-year top, wheat rebounds * Rains seen curbing U.S. corn planting this year * Wheat futures rise after closing lower on Tuesday (Adds details, quote) By Naveen Thukral SINGAPORE, May 22 Chicago corn futures rose for an eighth straight session on Wednesday as U.S. farmers are unlikely to finish planting this year following excessive rains, resulting in tighter world supplies. Wheat gained ground after closing lower on Tuesday with short-covering by funds expected support prices. The most-active corn contract on the Chicago Board of Trade had risen 0.3% to $3.95-1/4 a bushel by 0224 GMT, after hitting a one-year high on Tuesday. Wheat added 0.2% to $4.79-3/4 a bushel and soybeans were up 0.6% at $8.27-1/4 a bushel. "Weather forecasters now have the U.S. corn-planting window coming to an end with farmers struggling to plant," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Combined with a big investor short, the market is galloping higher." The U.S. Department of Agriculture said a lower-than-expected 49% of the U.S. corn crop has been planted, the slowest pace on record, based on data going back to 1980. Soybeans were 19% planted, also short of market expectations. The wheat market is being supported by short-covering by funds although ample world supplies are likely to keep a lid on the market. Top exporters, led by Russia are forecast to harvest bumper crops in the coming months. Soybean prices were pressured on expectations the USDA may soon announce a trade-war aid package for farmers that could boost soybean plantings and possibly further swell record-large stocks of the oilseed. Commodity funds were net buyers of CBOT corn and wheat futures contracts on Tuesday and net sellers of soybeans, soymeal and soyoil, traders said. Estimates for wheat ranged from funds buying a net 4,000 contracts to selling a net 2,000 contracts. Grains prices at 0224 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 479.75 1.00 +0.21% +3.17% 449.06 79 CBOT corn 395.25 1.00 +0.25% +3.13% 367.57 82 CBOT soy 827.25 5.25 +0.64% +0.67% 858.98 50 CBOT rice 11.29 -$0.02 -0.18% +1.99% $10.76 86 WTI crude 62.61 -$0.52 -0.82% -0.78% $63.23 Currencies Euro/dlr $1.116 $0.001 +0.05% -0.09% USD/AUD 0.6882 0.001 +0.20% -0.15% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Richard Pullin)

GRAINS-Corn climbs to 1-year peak, wheat hits 3-month high

21 May 2019

* Corn rises for seventh session, at highest since early June * U.S. corn 49% planted average pace of 80 pct - USDA * Wheat at 3-month high on delayed spring wheat planting (Adds details, quote) By Naveen Thukral SINGAPORE, May 21 Chicago corn futures rose for a seventh consecutive session on Tuesday, the longest rally in two years, as the pace of U.S. planting lags behind market expectations, stoking fears that farmers will be forced to abandon sowing. Wheat jumped to its highest in three months, underpinned by adverse weather in parts of the U.S. grain belt. The most-active corn contract on the Chicago Board of Trade rose 1.3% to $3.94 a bushel, as of 0336 GMT, the highest since June 1, 2018. The market has gained for seven consecutive sessions, the longest run-up in prices since June 2017. Wheat was up 1.1% at $4.83-1/2 a bushel, near the session high of $4.88 a bushel - the highest since Feb 25. Soybeans added 0.7% to $8.37 a bushel, after closing 1.2% higher on Monday. "There is bullish momentum in the corn market," said a Singapore-based trader. "Premiums in the physical market are going up as farmers are not selling." The USDA said 49% of the corn crop has been planted, behind analysts' expectations and below five-year average of 80%. The USDA said 19% of the soybean crop has been planted, behind market expectations. Delayed corn planting may prompt some farmers to shift to seeding soybeans instead, or leave fields fallow. Farmers who plant corn particularly late or under adverse weather conditions could see below-average yields. Corn may break a resistance at $3.96-3/4 and rise to $4.05-1/2, as it is riding on a fierce wave c, which is capable of travelling to its 100% projection level at $4.05-1/2, according to Wang Tao, a Reuters market analyst for commodities technicals. Wheat is drawing support because of excessive and potentially crop-damaging rains in the southern Plains, including in top winter wheat state of Kansas. Russian export prices for the new wheat crop, which is going to start arriving on the market in summer, rose last week following an increase in global benchmark Chicago prices, analysts said on Monday. Black Sea prices for the new crop of Russian wheat with 12.5% protein content were $186 per tonne on a free-on-board (FOB) basis at the end of last week, up $5 from a week earlier, Russian agricultural consultancy IKAR said in a note. China's soymeal futures rose to a five-month high on Tuesday, as investors bet on tightened supplies amid a deadlock of Sino-U.S. trade relation. Commodity funds were net buyers of Chicago Board of Trade corn, wheat, soybean, soymeal and soyoil futures contracts on Monday, traders said. Grains prices at 0336 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 483.50 5.25 +1.10% +3.53% 448.95 82 CBOT corn 394.00 5.00 +1.29% +3.96% 366.86 82 CBOT soy 837.50 5.75 +0.69% -0.27% 861.99 56 CBOT rice 11.24 $0.02 +0.13% +3.07% $10.74 91 WTI crude 63.30 $0.20 +0.32% +0.86% $63.28 Currencies Euro/dlr $1.116 $0.001 +0.06% -0.08% USD/AUD 0.6891 0.002 +0.33% -0.01% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

GRAINS-Corn climbs 11-month high on U.S. planting delays

20 May 2019

* Chicago corn rises 1.5 pct, up for 6th consecutive session * Corn planting delays in U.S. Midwest support prices (Adds details, quote) By Naveen Thukral SINGAPORE, May 20 Chicago corn jumped to its highest since June on Monday, rising for a sixth session in a row as planting delays across parts of the U.S. Midwest underpinned the market. Wheat climbed more than 1 percent as investors covered short positions. The most-active corn contract on the Chicago Board of Trade rose 1.5% to $3.89 a bushel by 0254 GMT, after hitting its highest since early June 2018 at $3.89-1/4 a bushel earlier in the session. Wheat was up 1.3% at $4.71-1/4 a bushel, after closing down 0.4 percent on Friday and soybeans added nearly 1.3% at $8.32 a bushel after dropping 2.1% in the last session. "The talk between traders is that "prevented planted" acres for corn may be as high as 5 million acres," said Ole Houe, director of advisory services at brokerage IKON Commodities. "Whereas in the past, we have never seen it above 3.6 million acres and then there is the debate over "yield drag" from later planted corn." Showers over the next 10 days are threatening to further slow planting from the Dakotas to Illinois, regions that have endured torrential rain this spring, the Commodity Weather Group said. The delayed planting season across much of North America is starting to cause economic ripple effects along the farm supply chain. Executives at agricultural equipment maker Deere & Co on Friday warned that farmers are becoming "much more cautious about making major purchases," in part because of the weather impact on planting. The market is awaiting the U.S. Department of Agriculture's next crop planting update due later on Monday to see whether farmers made much headway during relatively drier conditions last week. The United States is likely to permanently lose soybean export market share in China the longer U.S.-China trade talks drag on, a top executive at the U.S. Soybean Export Council industry group said on Friday. U.S. soybean exports to China, the world's top market, plunged 74% last year after Beijing slapped steep tariffs on American beans in July in retaliation for U.S. duties on Chinese goods. Brazilian farmers are taking advantage of U.S.-China trade tensions. Soybean trading in Brazil has gained momentum in recent days, driven by a wave of Chinese demand, boosting prices and premiums paid at ports amid a weakening of the Brazilian currency. Large speculators trimmed their net short position in CBOT corn futures in the week to May 14, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial 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 0254 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 471.25 6.25 +1.34% +0.91% 448.54 78 CBOT corn 389.00 5.75 +1.50% +2.64% 366.69 80 CBOT soy 832.00 10.25 +1.25% -0.92% 861.81 53 CBOT rice 11.07 -$0.01 -0.05% +1.47% $10.74 84 WTI crude 63.60 $0.84 +1.34% +1.16% $63.33 Currencies Euro/dlr $1.116 $0.000 -0.01% -0.15% USD/AUD 0.6913 0.005 +0.66% +0.30% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Rashmi Aich)

GRAINS-Corn climbs to near four-month top on U.S. planting delays

17 May 2019

* Corn futures gain for 5th session, up 8.5% this week * More rains to further delay planting in U.S. Midwest (Adds details, quote) By Naveen Thukral SINGAPORE, May 17 Chicago corn rose to its highest since late January on Friday, with the market set for its biggest weekly rally in four years as concerns over U.S. planting delays buoy the market. Wheat jumped to its highest since early April on short-covering, while soybeans were little changed, weighed down by U.S.-China trade tensions. The most-active corn contract on the Chicago Board of Trade has climbed 8.5% this week, the biggest weekly gain since July 2015. Corn hit a high of $3.82-1/4 a bushel on Friday - the highest since Jan. 22. Wheat is up nearly 11% this week, the biggest weekly climb since June 2017 and soybeans have added 4%, the first weekly gain in six weeks. Rains across U.S. Midwest are threatening to further slow corn planting which could prompt farmers to switch to soybeans which are planted later. "Corn prices rallied sharply and hold those gains," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Moreover, the weak momentum that triggered at least some selling is close to being extinguished. Momentum investors will be getting buy signals." Farmers had seeded 30% of the U.S. 2019 corn crop by Sunday, the U.S. Department of Agriculture (USDA) said on Monday, well behind a five-year average of 66%. Crop consultancy Strategie Grains has again cut its forecast for this year's wheat and barley production in the European Union, partly due to drought in Hungary, but said recent rain across the EU had eased dryness and left decent harvest prospects. In a monthly cereal report published on Thursday, the French firm reduced its projection for EU soft wheat production in the upcoming 2019/20 season to 143.9 million tonnes from 144.8 million forecast in April. An escalating U.S.-China trade war continues to weigh on soybean prices. U.S. President Donald Trump has dismissed the ongoing trade war with China as a "little squabble," but there are clear signs of the conflict already having an impact on the economy, and the stock market has become jittery again. Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Thursday, traders said. Trader estimates of net fund buying in corn ranged from 24,000 to 40,000 contracts. The following table reflects the average of estimates from trade sources Grains prices at 0151 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 470.25 3.25 +0.70% +4.85% 449.13 79 CBOT corn 381.50 2.50 +0.66% +3.46% 365.89 76 CBOT soy 840.25 0.50 +0.06% +1.05% 867.77 60 CBOT rice 10.92 $0.01 +0.09% -0.91% $10.72 81 WTI crude 63.25 $0.38 +0.60% +2.38% $63.31 Currencies Euro/dlr $1.118 -$0.002 -0.21% -0.24% USD/AUD 0.6895 -0.003 -0.46% -0.66% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Richard Pullin)

GRAINS-Corn rises for 4th day as rains threaten to further slow U.S. planting

16 May 2019

* Corn rises 1.5% on forecasts of more rains in U.S. Midwest * Wheat gains 1% as funds cover short positions, soybean firm (Adds chart, updates prices) By Naveen Thukral SINGAPORE, May 16 Chicago corn futures gained 1.5% on Thursday, rising for the fourth consecutive session as forecasts for more rain across key growing parts of the U.S. Midwest stoked fears of further planting delays. Wheat rose 1% on short-covering by funds, while soybeans ticked higher. The most-active corn contract on the Chicago Board of Trade rose 1.2% to $3.74 a bushel by 0720 GMT, after hitting its highest since March 26 at 3.80 a bushel on Wednesday. Wheat was up 1.3% at $4.54-1/2 a bushel after closing little changed in the last session and soybeans added 0.3% to $8.38 a bushel, having closed up 0.5% on Wednesday. Corn is drawing support as rains forecast across the U.S. Midwest are likely to further delay planting. If farmers are unable to sow corn, they will switch to soybeans, which has a later planting window. Still, ample world supplies of the grain kept a lid on prices. "Corn planting delay is an issue although supplies are pretty ample worldwide," said Phin Ziebell, an agribusiness economist at National Australia Bank. "We are not in a world where we have lack of corn. This market action is mainly short-covering." U.S. farmers seeded 30% of the U.S. 2019 corn crop by Sunday, the government said, lagging the five-year average of 66%. The soybean crop was 9% planted, behind the five-year average of 29%. The National Oilseed Processors Association said its U.S. members crushed 159.99 million bushels of soybeans in April, down from 170.0 million in March and below an average of analyst expectations for 161.6 million. Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Wednesday and net even in wheat, traders said. Trader estimates of net fund buying in corn ranged from 9,000 to 25,000 contracts. The following table reflects the average of estimates from trade sources Expectations of higher wheat output in the Black Sea region is limiting gains in prices. Favourable weather this winter and spring will allow Ukraine to increase its 2019 wheat harvest to 26.2 million tonnes and its barley harvest to 7.9 million, the APK-Inform consultancy said on Wednesday. CBOT July corn is biased to retrace to $3.66 per bushel, as it failed to break a resistance at $3.80, Wang Tao, a Reuters market analyst for commodities technicals, wrote in a report. Grains prices at 0720 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 454.50 5.75 +1.28% +1.34% 448.60 71 CBOT corn 374.00 4.50 +1.22% +1.42% 365.64 72 CBOT soy 838.00 2.50 +0.30% +0.78% 867.69 59 CBOT rice 10.91 -$0.01 -0.09% -1.00% $10.72 81 WTI crude 62.42 $0.40 +0.64% +1.04% $63.28 Currencies Euro/dlr $1.120 $0.000 +0.04% +0.01% USD/AUD 0.6913 -0.001 -0.20% -0.40% (Reporting by Naveen Thukral; editing by Uttaresh.V and Rashmi Aich)

GRAINS-Corn up for 4th session as rains threaten to further slow US planting

16 May 2019

* Corn rises 1.5% on forecasts of more rains in U.S. Midwest * Wheat gains 1% as funds cover short positions, soybean firm (Adds details, quote) By Naveen Thukral SINGAPORE, May 16 Chicago corn futures gained 1.5% on Thursday, rising for the fourth consecutive session as forecasts for more rain across key growing parts of the U.S. Midwest stoked fears of further planting delays. Wheat rose 1% on short-covering by funds, while soybeans ticked higher. The most-active corn contract on the Chicago Board of Trade rose 1.4% to $3.74-1/2 a bushel by 0237 GMT, after hitting its highest since March 26 at 3.80 a bushel on Wednesday. Wheat was up 1% at $4.53 a bushel after closing little changed in the last session and soybeans added 0.2% at $8.37-1/4 a bushel after closing up 0.5% on Wednesday. Corn is drawing support as rains forecast across the U.S. Midwest are likely to further delay planting. If farmers are unable to sow corn, they will switch to soybeans, which has a later planting window. Still, ample world supplies of the grain kept a lid on prices. "Corn planting delay is an issue although supplies are pretty ample worldwide," said Phin Ziebell, an agribusiness economist at National Australia Bank. "We are not in a world where we have lack of corn. This market action is mainly short-covering." U.S. farmers seeded 30% of the U.S. 2019 corn crop by Sunday, the government said, lagging the five-year average of 66%. The soybean crop was 9% planted, behind the five-year average of 29%. The National Oilseed Processors Association said its U.S. members crushed 159.99 million bushels of soybeans in April, down from 170.0 million in March and below an average of analyst expectations for 161.6 million. Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Wednesday and net even in wheat, traders said. Trader estimates of net fund buying in corn ranged from 9,000 to 25,000 contracts. The following table reflects the average of estimates from trade sources Expectations of higher wheat output in the Black Sea region is limiting gains in prices. Favourable weather this winter and spring will allow Ukraine to increase its 2019 wheat harvest to 26.2 million tonnes and its barley harvest to 7.9 million, the APK-Inform consultancy said on Wednesday. Grains prices at 0237 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 453.00 4.25 +0.95% +1.00% 448.55 70 CBOT corn 374.50 5.00 +1.35% +1.56% 365.66 72 CBOT soy 837.25 1.75 +0.21% +0.69% 867.67 59 CBOT rice 10.91 -$0.01 -0.09% -1.00% $10.72 81 WTI crude 62.43 $0.41 +0.66% +1.05% $63.28 Currencies Euro/dlr $1.121 $0.000 +0.04% +0.02% USD/AUD 0.6916 -0.001 -0.16% -0.36% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Uttaresh.V)

GRAINS-Corn up for 3rd session on US planting delays, soybeans ease after rally

15 May 2019

* Corn up 5.3 pct in 3 sessions, biggest 3 day rally since Nov * Soybeans tick lower after strong gains, US-China trade in focus (Adds details, quote) By Naveen Thukral SINGAPORE, May 15 Chicago corn rose for a third consecutive session on Wednesday, notching its biggest 3-day gain since late November as concerns over planting delays in the U.S. Midwest underpinned the market. Soybeans lost ground after rallying in the last session, with Washington-Beijing trade talks taking the spotlight. The most-active corn contract on the Chicago Board of Trade rose 0.4% to $3.70-1/4 a bushel by 0305 GMT after closing up 3.4% in the previous session when prices hit a high of $3.70-3/4 a bushel - the highest since May 3. Soybeans slid 0.3% to $8.29-1/4 a bushel and wheat was up 0.3% at $4.49-3/4 a bushel. U.S. farmers seeded 30% of the U.S. 2019 corn crop by Sunday, the government said, lagging the five-year average of 66% as well as the average estimate in a Reuters analyst survey of 35%. The soybean crop was 9% planted, behind the five-year average of 29% and the average trade estimate of 15%. "This weather risk is amplified by the large short position speculative funds are holding in corn and beans," said Ole Houe, director of advisory services at brokerage IKON Commodities. "Mind you the corn weather issue is not necessarily a small one." Soybeans jumped from 10-year lows on Tuesday on optimistic comments from U.S. President Donald Trump. Trump on Tuesday called the trade war with China "a little squabble" and insisted talks between the world's two largest economies had not collapsed, as investors remained on guard for a further escalation of tit-for-tat tariffs. The U.S. soybean processing pace in April was expected to be above last year and the highest ever for the month as soy plants took advantage of good margins and ample supplies of beans, according to analysts polled ahead of a monthly industry report. Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said. Trader estimates of net fund buying in corn ranged widely from 30,000 to 70,000 contracts and in soybeans from 13,000 to 30,000 contracts. Grains prices at 0305 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 449.75 1.25 +0.28% +2.92% 449.38 59 CBOT corn 370.25 1.50 +0.41% +3.86% 365.59 59 CBOT soy 829.25 -2.25 -0.27% +3.33% 869.95 43 CBOT rice 10.93 -$0.09 -0.77% -0.59% $10.72 80 WTI crude 61.43 -$0.35 -0.57% +0.64% $63.26 Currencies Euro/dlr $1.121 $0.000 +0.03% -0.15% USD/AUD 0.6928 -0.001 -0.19% -0.22% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; editing by Richard Pullin)

GRAINS-Soybean prices hit lowest since 2008, touch below $8 per bushel

13 May 2019

* Soybeans hit lowest in more than 10 years at $7.99-1/2 * Escalating Washington-Beijing trade war weighs on prices (Adds chart, updates prices) By Naveen Thukral SINGAPORE, May 13 Chicago soybean futures on Monday dropped to their lowest in more than 10 years, pressured by concerns that an escalation in the trade war between Washington and Beijing would further hit U.S. exports of the oilseed. The most-active soybean contract on the Chicago Board of Trade had dropped 0.8% to $8.03 a bushel, as of 0626 GMT, after earlier marking its lowest since December 2008 at $7.99-1/2 a bushel. Corn lost 0.6% to $3.49-1/2 a bushel, and wheat was down 0.7% at $4.22 a bushel. "China has not yet announced any retaliation to higher U.S. tariffs. But the U.S. has said that "no deal" will result in U.S. tariffs being applied to all imports from China," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "And the U.S. has begun to harden their deadlines." Should the Sino-U.S. trade war drag on, U.S. agricultural exports will likely suffer. China is expected to retaliate against the United States for increasing its tariffs on $200 billion in Chinese goods to 25% from 10% early on Friday. U.S. Agriculture Secretary Sonny Perdue said on Friday that President Donald Trump had asked him to create a plan to help U.S. farmers cope with the heavy impact of the trade conflict. A new aid programme would be the second round of assistance for farmers, after the U.S. Department of Agriculture's (USDA) $12 billion plan last year to compensate for lower prices for farm goods and lost sales stemming from trade disputes with China and other nations. The CBOT soybean July contract may fall more into a range of $7.88-1/4 to $7.94-1/2 per bushel, as it has cleared a key support at $8.04, Wang Tao, Reuters market analyst for commodities technicals, wrote in a report. The USDA on Friday forecast bigger-than-expected domestic supplies of soybeans, corn and wheat, further pressuring the markets. Large speculators trimmed their net short position in CBOT corn futures in the week ended May 7, 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 0626 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 422.00 -2.75 -0.65% -1.75% 450.23 30 CBOT corn 349.50 -2.25 -0.64% -1.06% 365.43 27 CBOT soy 803.00 -6.25 -0.77% -1.20% 875.34 5 CBOT rice 11.03 $0.04 +0.36% +0.82% $10.73 73 WTI crude 61.75 $0.09 +0.15% +0.08% $63.32 Currencies Euro/dlr $1.123 $0.000 +0.00% +0.12% USD/AUD 0.6974 -0.003 -0.37% -0.20% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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