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Naveen Thukral

GRAINS-Soybeans at 2-week high as tariff waivers by China support

9:53am IST

* Soybeans up for 5th session on hopes of higher Chinese demand * China to waive U.S. soybean, pork import tariffs * China's November soybean imports up 54% from a year ago (Adds details, quote) By Naveen Thukral SINGAPORE, Dec 9 Chicago soybean futures rose for a fifth straight session on Monday to their highest in almost two weeks after China last week said it will waive import tariffs for some U.S. soybean and pork shipments. Wheat lost ground after closing marginally higher, while corn ticked up. The most-active soybean contract on the Chicago Board Of Trade rose 0.3% to $8.92-1/2 a bushel by 0347 GMT, having earlier in the session climbed to its highest since Nov. 26 high at $8.94-1/4 a bushel. Wheat was down 0.2% at $5.23-1/4 a bushel, while corn added 0.1% at $3.77 a bushel. "The market is being helped by China granting further tariff waivers on imports of U.S. soybeans," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "The better tone on U.S.-China trade sentiment also helped – but only so much." The tariff waivers by China were based on applications by individual companies, the finance ministry said in a statement, citing a decision by the country's Cabinet without specifying the quantities involved. U.S. traders and farmers hope negotiations will ease the trade war and increase Chinese purchases of American agricultural products. The tariff waivers are "good mood music," White House economic adviser Larry Kudlow said. China's November soybean imports jumped from a year ago as shipments from the United States booked during a truce in the Sino-U.S. trade war cleared customs, customs data showed. China imported 8.28 million tonnes of soybeans in November, up 54% from 5.38 million tonnes a year ago, as U.S. soybean cargoes arrived, data from the General Administration of Customs showed on Sunday. Canadian farmers produced the smallest canola crop in four years, less than expected, after unusually wet autumn weather that left millions of acres unharvested, a government report showed on Friday. Farmers produced 18.6 million tonnes of canola, down 8% from last year, Statistics Canada reported, and 1 million tonnes less than the average trade guess before the report. Canada is the world's biggest producer and exporter of canola. Large speculators trimmed their net short position in CBOT corn futures in the week to Dec. 3, 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 0347 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 523.25 -1.25 -0.24% -0.10% 519.18 57 CBOT corn 377.00 0.25 +0.07% +0.07% 384.53 43 CBOT soy 892.50 3.00 +0.34% +0.93% 908.93 55 CBOT rice 12.29 -$0.03 -0.20% -0.08% $12.11 55 WTI crude 58.88 -$0.32 -0.54% +0.77% $56.97 Currencies Euro/dlr $1.105 $0.000 -0.03% -0.43% USD/AUD 0.6830 -0.001 -0.12% -0.04% 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-Wheat set for biggest weekly loss in nearly 4 months on supply pressure

06 Dec 2019

* Wheat down 3.3% this week, biggest decline since mid-August * Soybeans eyes 1st weekly gain in a month on strong demand (Recasts with move in wheat futures, adds quote in paragraph) By Naveen Thukral SINGAPORE, Dec 6 Chicago wheat futures were set for their biggest weekly decline in almost four months on Friday, giving up some of gains made in November, as ample world inventories and a lack of demand for U.S. supplies pressured the market. Soybeans gained ground as rising hopes over a long-awaited trade deal between Washington and Beijing underpinned prices. The most-active wheat contract on the Chicago Board Of Trade is down 3.3% this week, the biggest loss since the week ending Aug. 16. Soybeans are up 1.2% for the week, the first weekly rise since early November, while corn is down nearly 1% this week after climbing 3.4% last week. "The rally in wheat prices in the last two weeks was overdone as there is no shortage of wheat," said one Singapore-based grains trader. "Australian drought has been factored into the market and we will not know the fate of the U.S. crop anytime soon as it is going to be under the snow until March." The wheat market had gained nearly 8% in the last two weeks due to short-covering and lower production in Australia. Wheat export sales of 228,100 tonnes were the lowest since mid-June and also below a range of market forecasts. Corn export sales came in at 548,500 tonnes, near the low end of estimates that ranged from 500,000 tonnes to 900,000 tonnes. In the soybean market, there was additional support stemming from expectations of tighter soymeal supplies after news that an Argentine bean crusher was experiencing financial stress. Argentine soy crusher Vicentin said in a statement on Thursday it had begun a payment restructuring process because of "financial stress," which could tighten up world supplies of soymeal. A source close to the firm said the company was struggling to repay over $350 million in debt. The U.S. Department of Agriculture (USDA) said on Thursday morning that private exporters reported sale of 245,000 tonnes of soybeans to unknown destinations, involving 125,000 tonnes for delivery in the 2019/20 marketing year and 120,000 tonnes for delivery in 2020/21. Commodity funds were net sellers of Chicago Board of Trade corn and wheat futures contracts on Thursday, traders said. They were net buyers of CBOT soybeans, soymeal and soyoil. Grains prices at 0405 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 523.75 0.00 +0.00% -0.71% 519.08 56 CBOT corn 377.25 0.50 +0.13% -0.33% 385.20 40 CBOT soy 886.75 2.50 +0.28% +1.00% 910.28 45 CBOT rice 12.27 -$0.03 -0.20% -0.20% $12.10 56 WTI crude 58.22 -$0.21 -0.36% -0.36% $56.86 Currencies Euro/dlr $1.111 $0.000 +0.04% +0.27% USD/AUD 0.6840 0.001 +0.10% -0.13% 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-Soybeans up on U.S.-China trade deal hopes, Brazilian crop outlook caps gains

05 Dec 2019

* Soybeans up for 3rd session on hopes of U.S.-China trade deal * Expectations of record Brazilian crop to boost world supplies (Adds quote in paragraph , updates prices) By Naveen Thukral SINGAPORE, Dec 5 U.S. soybeans rose for a third straight session on Thursday on signs that a trade deal between Washington and Beijing was edging closer, although expectations of a record Brazilian crop capped gains. Wheat gained for second day on short-covering, while corn edged up after closing lower on Wednesday. The most-active soybean contract on the Chicago Board Of Trade rose 0.1% at $8.79 a bushel, by 0352 GMT. It closed 0.8% firmer on Wednesday. Wheat gained 0.1% at $5.28-1/4 a bushel, having closed 0.4% higher on Wednesday, while corn edged up 0.1% to $3.78-3/4 a bushel, after closing 0.7% lower in the previous session. "I think South American yields will cap prices no matter what happens on the trade issue," said Phin Ziebell, agribusiness economist at National Australia Bank. Soybean prices got a lift following a Bloomberg report that Beijing and Washington were moving closer to a deal. U.S. President Donald Trump said on Wednesday that trade talks with China were going "very well," sounding more positive than on Tuesday when he said a trade deal might have to wait until after the 2020 U.S. presidential election. 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 of 16 market analysts. Commodity funds were net buyers of CBOT soybean, wheat, soymeal and soyoil futures contracts and net sellers of corn on Wednesday, traders said. Grains prices at 0352 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 528.25 0.75 +0.14% -1.31% 518.94 59 CBOT corn 378.75 0.25 +0.07% -0.85% 386.56 45 CBOT soy 879.00 1.00 +0.11% +0.98% 914.55 36 CBOT rice 12.28 -$0.01 -0.12% -1.56% $12.08 57 WTI crude 58.21 -$0.22 -0.38% +3.76% $56.79 Currencies Euro/dlr $1.108 $0.007 +0.63% +0.70% USD/AUD 0.6839 0.008 +1.11% +1.05% 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-Wheat drops for third session on supply pressure, soybeans tick higher

04 Dec 2019

* 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 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)

METALS-Copper prices slide as new U.S. tariffs add to trade fears

03 Dec 2019

(Recasts, updates prices) By Naveen Thukral SINGAPORE, Dec 3 London copper prices slid on Tuesday, with most industrial metals losing steam, as new U.S. tariffs on Brazil and Argentina revived global trade worries. U.S. President Donald Trump stunned markets with tariffs against the two South American nations Brazil and Argentina, while weak U.S. factory data overshadowed positive manufacturing figures from China. The rising trade tensions were weighing on prices of industrial metals, ANZ said in a report. COPPER: Three-month copper on the London Metal Exchange was down 0.5% at $5,854 a tonne, as of 0712 GMT, and the most-traded copper contract on the Shanghai Futures Exchange gave up 0.3% to 47,080 yuan ($6,688.55) a tonne. MANUFACTURING: China's factory activity showed surprising signs of improvement in November, with growth picking up to a near three-year high, a private sector survey showed on Monday, reinforcing upbeat government data released over the weekend. DEFLATIONARY RISKS: Analysts, however, remain concerned about deflationary risks in the sector, unconvinced that the worst is over yet for Chinese manufacturers. They say the sub-indexes of both surveys painted a picture of patchy recovery that will be difficult to sustain. TRADE DEAL: Investors in commodity and financial markets are expecting a U.S.-China trade deal to help drive economic growth. POSSIBILITY: A senior adviser to U.S. President Donald Trump said on Monday an agreement was still possible before the end of the year, adding that the first phase of the deal was being put to paper. ALUMINIUM OUTPUT: Norsk Hydro , one of the world's biggest aluminium producers, plans to cut production by 20% at its majority-owned Slovalco plant in Slovakia, citing a weakening market. nL8N28C1YO INVENTORIES: The weak aluminium market has led to rising inventories. On-warrant LME stocks , material not earmarked for delivery, reached 1,114,650 tonnes, the highest since Feb. 22, data showed. FUTURES CONTRACT: China's Shanghai International Energy Exchange (INE) is preparing to launch a copper futures contract within the next year that will be open to domestic and foreign investors, according to two sources familiar with the plans. PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 7.0389 Chinese yuan) (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips and Richard Pullin)

GRAINS-Soybeans post first rise in nine sessions, supplies cap gains

03 Dec 2019

* Soybeans rise from near 3-month lows, wheat recoups losses * Ample supplies, U.S.-China trade deal uncertainty limit gains (Adds quote) By Naveen Thukral SINGAPORE, Dec 3 Chicago soybeans edged higher on Tuesday after hitting a near three-month low in the previous session, with abundant global supplies and uncertainty over a U.S.-China trade deal limiting the gains. Wheat rose after closing down more than 1% while corn gained for a second session. The most-active soybean contract on the Chicago Board Of Trade was up 0.4% at $8.73-3/4 a bushel by 0149 GMT, after hitting a Sept. 11 low of 8.68 on Monday. Wheat added 0.4% to $5.37-1/4 a bushel and corn rose 0.1% at $3.82-1/2 a bushel. "Look at all the reaction to trade drama, the soybean market is sensitive to it," said Phin Ziebell, agribusiness economist at National Australia Bank. "There are limited concerns about the supply as Brazilian crop looks big." Soybeans remained under pressure as traders nervously awaited signs of a deal between the United States and China to end their damaging trade war. U.S. President Donald Trump on Monday said U.S. legislation backing protesters in Hong Kong did not make trade negotiations with China easier but added he believes Beijing still wants a deal. Soybean export inspections dropped to 1.545 million tonnes from 1.952 million tonnes, near the low end of trade estimates. Brazil's 2019/20 soybean harvest could come in at a record 122.7 million tonnes, according to the average forecast in a Reuters survey of 16 market analysts. The U.S. Agriculture Department said on Monday morning corn export inspections fell to 428,856 tonnes in the week ended Nov. 28, from 615,968 tonnes a week earlier, below market forecasts. Wheat export inspections of 246,968 tonnes also were below expectations. Australia on Tuesday cut its wheat production forecast by nearly 20% for the year through June 2020, as an unrelenting drought across the country's east coast will likely see output fall to an 11-year low. In the U.S. Midwest, a blizzard threatens to force some farmers in that key production region to leave their crops standing until the spring. Commodity funds were net buyers of CBOT corn and soymeal futures contracts on Monday, traders said. They were net sellers of CBOT soybeans, wheat and soyoil. Grains prices at 0319 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 537.25 2.00 +0.37% +1.99% 518.81 72 CBOT corn 382.50 0.50 +0.13% +2.62% 387.75 53 CBOT soy 873.75 3.25 +0.37% -0.94% 919.60 22 CBOT rice 12.37 -$0.10 -0.84% -0.16% $12.05 68 WTI crude 56.17 $0.21 +0.38% -3.34% $56.48 Currencies Euro/dlr $1.107 $0.006 +0.51% +0.58% USD/AUD 0.6818 0.005 +0.80% +0.74% 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)

METALS-Copper prices slide as China data fails to calm investor nerves

03 Dec 2019

(Adds quote in paragraph 3, updates prices) By Naveen Thukral SINGAPORE, Dec 3 London copper prices slid on Tuesday, with most industrial metals coming under pressure, as manufacturing data from China failed to assuage lingering doubts of an economic slowdown. There was additional pressure on metals and across the financial markets after U.S. President Donald Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions. "The metal markets were also rattled by Trump's move to reinstate tariffs on steel and aluminium from Argentina and Brazil, due to a massive devaluation of their currencies," ANZ said in a research note. COPPER: Three-month copper on the London Metal Exchange was down 0.3% at $5,866 a tonne, as of 0335 GMT, and the most-traded copper contract on the Shanghai Futures Exchange gave up 0.3% to 47,090 yuan ($6,689.97) a tonne. MANUFACTURING: China's factory activity showed surprising signs of improvement in November, with growth picking up to a near three-year high, a private sector survey showed on Monday, reinforcing upbeat government data released over the weekend. DEFLATIONARY RISKS: Analysts, however, remain concerned about deflationary risks in the sector, unconvinced that the worst is over yet for Chinese manufacturers. They say the sub-indexes of both surveys painted a picture of patchy recovery that will be difficult to sustain. TRADE DEAL: Investors in commodity and financial markets are expecting a U.S.-China trade deal to help drive economic growth. POSSIBILITY: A senior adviser to U.S. President Donald Trump said on Monday an agreement was still possible before the end of the year, adding that the first phase of the deal was being put to paper. ALUMINIUM OUTPUT: Norsk Hydro , one of the world's biggest aluminium producers, plans to cut production by 20% at its majority-owned Slovalco plant in Slovakia, citing a weakening market. nL8N28C1YO INVENTORIES: The weak aluminium market has led to rising inventories. On-warrant LME stocks , material not earmarked for delivery, reached 1,114,650 tonnes, the highest since Feb. 22, data showed. FUTURES CONTRACT: China's Shanghai International Energy Exchange (INE) is preparing to launch a copper futures contract within the next year that will be open to domestic and foreign investors, according to two sources familiar with the plans. PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 7.0389 Chinese yuan) (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

GRAINS-Wheat near 5-month high on supply woes; soybeans rebound

02 Dec 2019

* Wheat near highest since late June, extends Friday's rally * Soybean rise for 1st time in 8 sessions, corn up for 2nd day (Recasts with wheat, adds quote in paragraphs 5-6) By Naveen Thukral SINGAPORE, Dec 2 Chicago wheat futures on Monday traded near last session's five-month highs, with the market supported by concerns over tightening supplies and short-covering. Soybeans rose for the first time in eight sessions, rebounding from Friday's more than two-month lows, although uncertainty around a trade deal between Washington and Beijing limited gains. The most active wheat contract on the Chicago Board Of Trade was unchanged at $5.41-3/4 a bushel, as of 0336 GMT, having closed up 2.8% on Friday when prices hit a June 28 high of 5.46. Soybeans rose 0.5% to $8.80-3/4 a bushel after hitting their lowest since Sept. 12 on Friday and corn added 0.2% to $3.82 a bushel. "U.S. wheat exports continue at a pace a little ahead of expectations," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "And the market is also realising its worries about Argentina's wheat crops. Reports from Argentina suggest yields in some regions are down by more than a third." Asian millers are hoping for shipments from Argentina to ease tightness in supplies resulting from a drought in Australia. Heavy autumn rain is expected to lead to a fall in wheat sowings in France and Britain, raising early doubts over prospects for next year's harvest in Europe, analysts said. But winter grain sowings in Russia are in a better condition than at the same time a year ago and compared with the average for the last couple of years, an official at the Hydrometcentre weather forecasting service told Reuters. The soybean market is also tracking developments in the U.S.-China trade talks. The deal was now "stalled because of Hong Kong legislation", news website Axios reported on Sunday, citing a source close to U.S. President Donald Trump's negotiating team. China said last week it would take "firm counter measures" if the United States continues to interfere in Hong Kong. Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Friday and net sellers of soybean and soymeal futures, traders said. Grains prices at 0336 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 541.75 0.00 +0.00% +2.85% 518.96 79 CBOT corn 382.00 0.75 +0.20% +2.48% 387.73 53 CBOT soy 880.75 4.00 +0.46% -0.14% 919.83 26 CBOT rice 12.49 $0.00 +0.00% +0.77% $12.06 82 WTI crude 56.10 $0.93 +1.69% -3.46% $56.48 Currencies Euro/dlr $1.102 $0.000 +0.01% +0.08% USD/AUD 0.6774 0.001 +0.15% +0.09% 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)

GRAINS-U.S. soybeans snap losing streak, S.American competition caps gains

27 Nov 2019

* Chicago soybean futures recover after five sessions of losses * Stiff competition from South American suppliers trims gains (Adds quote, updates prices) By Naveen Thukral SINGAPORE, Nov 27 Chicago soybeans gained ground on Wednesday, with bargain-buying underpinning prices after five consecutive sessions of decline to a two-month low, although stiff competition from South America limited gains. The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.2% at $8.85-3/4 a bushel, as of 0329 GMT. In the previous session, the contract hit $8.83 a bushel, its weakest since Sept. 27. Wheat gained 0.1% to $5.31-1/2 a bushel after closing marginally lower on Tuesday, while corn was flat at $3.67-1/2 a bushel. Chinese buyers scooped up at least 20 cargoes of Brazilian soybeans last week as uncertainty over a trade deal with the United States sent them rushing to lock in supplies, traders said on Monday. Improving South American crop weather also weighed on futures by bolstering soy production prospects for Brazil and Argentina. The United States and China are close to agreement on the first phase of a trade deal, U.S. President Donald Trump said on Tuesday, after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues. China is the world's biggest soybean importer and the United States has lost business since the trade dispute started last year. "A U.S. China trade deal might be the opportunity for a thaw once/whence U.S. beans are able to make their way into China in greater volumes," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. Brazilian corn exports are forecast to reach a record 41 million tonnes in 2019, according to grain exporter group Anec, bolstered by a weaker local currency and favourable Chicago prices after bad weather affected the U.S. crop. If confirmed, Brazilian exports will have grown by 80% from last year's level of 22.8 million tonnes, according to Anec data. The previous Brazilian corn export record was set in 2015, when the country shipped 30.7 million tonnes, Anec said. Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Tuesday and net even in wheat futures, traders said. Grains prices at 0329 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 531.50 0.50 +0.09% -0.28% 518.46 68 CBOT corn 367.50 0.00 +0.00% -0.81% 379.31 34 CBOT soy 885.75 1.50 +0.17% -0.76% 924.59 23 CBOT rice 12.24 $0.00 +0.00% +0.37% $12.03 73 WTI crude 58.24 -$0.17 -0.29% +0.40% $56.37 Currencies Euro/dlr $1.102 $0.000 -0.02% +0.03% USD/AUD 0.6789 0.000 +0.03% +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 and Sherry Jacob-Phillips)

GRAINS-Soybeans tick up on trade optimism, wheat eases for 1-month peak

26 Nov 2019

* Soybeans rebound from two-month low on U.S-China trade comments * Wheat eases after short-covering rally to one-month high (Recasts to lead with soybeans, adds quote in paragraph 5) By Naveen Thukral SINGAPORE, Nov 26 Chicago soybeans futures edged higher on Tuesday as the market took a breather after four sessions of losses amid optimism over trade talks between Washington and Beijing. Wheat slid, giving up some of the previous session's gains that drove the market to its highest in more than a month on potentially tighter world supplies. The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.1% at $8.93-3/4 a bushel, as of 0350 GMT, while corn gave up 0.1% to $3.70 a bushel. Wheat lost 0.3% to $5.31-1/2 a bushel, after hitting its highest since Oct. 21 at $5.34-3/4 a bushel on Monday. "There is some optimism on the trade front but it is hard to make a prediction where that might end up. We will have to wait and see what happens," said Phin Ziebell, agribusiness economist at National Australia Bank. "We are a bit sceptical about the rally in wheat prices as the global market is not in a situation of a supply constraint." China and the United States are "moving closer to agreeing" on a "phase one" trade deal, the Global Times, a tabloid run by the ruling Communist Party's official People's Daily, reported on Sunday. But the report noted that Washington and Beijing had not agreed on specifics or size of rollbacks of tariffs on Chinese goods. Beijing's insistence that Washington roll back the Trump administration's tariffs has been a major sticking point. Chinese buyers scooped up at least 20 cargoes of Brazilian soybeans last week as uncertainty over a trade deal with the United States sent them rushing to lock in supplies, traders said on Monday. In the wheat market, there has been support in recent days on a mix of fund-driven short-covering and supportive fundamentals, including rising cash values for U.S. and Russian supplies, wet weather in Europe and fears of a decline in U.S. acreage. 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. Analysts also noted weather issues, including dry conditions in Russia and excessive moisture elsewhere. After the CBOT closed on Monday, the U.S. Department of Agriculture rated 52% of the U.S. winter wheat crop in good to excellent condition, unchanged from a week earlier. Analysts surveyed by Reuters on average had expected a decline of 1 percentage point. Commodity funds were net buyers of CBOT corn and wheat contracts on Monday and net sellers of soyoil, soybean and soymeal futures, traders said. Grains prices at 0350 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 531.50 -1.50 -0.28% +3.81% 517.20 67 CBOT corn 370.00 -0.50 -0.13% +0.41% 380.96 40 CBOT soy 893.75 1.25 +0.14% -0.80% 928.73 30 CBOT rice 12.20 $0.01 +0.04% -0.37% $12.03 71 WTI crude 57.96 -$0.05 -0.09% -1.06% $56.02 Currencies Euro/dlr $1.101 -$0.001 -0.07% -0.39% USD/AUD 0.6781 0.000 -0.07% -0.04% 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)

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