Chicago wheat eases on ample supplies, soybeans up for 2nd day
Chicago wheat futures slid for a third session in four on Monday as ample global supplies weighed on the market, although lower plantings in the United States kept a floor under the market. Soybeans rose for a second consecutive session on expectations of positive results from U.S.-China trade talks.
The most-active wheat contract on the Chicago Board of Trade lost 0.1 percent to $5.16-3/4 a bushel by 0305 GMT. Soybeans gained 0.3 percent to $9.17-1/2 a bushel and corn was up 0.1 percent at $3.74-3/4 a bushel. U.S. soybean supplies as of Dec. 1 were the biggest on
record as demand for the oilseed fizzled amid the trade war between the United States and China, the U.S. Department of Agriculture said on Friday.
The USDA also said that farmers seeded the smallest winter wheat area – 31.290 million acres – since 1909. An abundance of cheaper supplies around the globe has made U.S. wheat less desirable to overseas buyers in recent years. “U.S. growers have now cut their wheat planting by more than a quarter over the past five years,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“While that underwrites a smaller crop in season 2019, the major issue right now remains the sizeable U.S. inventories accumulated from past crops. The market needs more signs that inventory is being cut before prices can rally.” The focus this week is on U.S.-China trade talks. U.S. negotiators are preparing to press China this week on longstanding demands that it reform how it treats American
companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.
A new round of trade talks begins in Beijing on Monday, after the most recent set of negotiations concluded in Washington last week without a deal and with the top U.S. negotiator declaring that a lot more work needed to be done.
Grains prices at 0305 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 516.75 -0.50 -0.10% +0.68% 517.26 44 CBOT corn 374.75 0.50 +0.13% -0.46% 378.23 37 CBOT soy 917.50 3.00 +0.33% +0.47% 913.29 54 CBOT rice 10.37 $0.00 +0.00% -1.29% $10.59 30 WTI crude 52.14 -$0.58 -1.10% -0.95% $51.61 Currencies Euro/dlr $1.132 -$0.001 -0.06% -0.17% USD/AUD 0.7098 0.001 +0.14% -0.01% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
Source: Reuters (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)