GRAINS-Corn futures set for second weekly gain on strong U.S. exports

Chicago corn futures ticked lower on Friday, but were on track for their second weekly gain as higher-than-expected U.S. weekly exports underpinned sentiment.

Soybeans inched down after previous session’s rally lifted by chances of a breakthrough in the Sino-U.S. trade negotiation. Traders hope that recent goodwill gestures from Beijing, including long-sought U.S. soybean purchases, may move both economies closer to a deal to end the trade dispute.

Wheat lost ground although the market was on track for a third weekly gain as dry weather curbs yields in the Southern Hemisphere.

FUNDAMENTALS

* The Chicago Board of Trade most-active corn contract was up nearly 1% this week, while soybeans have lost almost 1%. Wheat is up 0.5% so far this week.

* The U.S. Department of Agriculture (USDA) in a weekly export sales report said net 1.728 million tonnes of U.S. soybeans were sold last week, along with 1.467 million tonnes of corn, both above trade expectations.

* U.S. and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, as the world’s two largest economies try to bridge deep policy differences and find a way out of their protracted trade war.

* A Chinese delegation will visit American farm regions with U.S. officials next week in an effort to build goodwill amid ongoing trade negotiations, U.S. Agriculture Secretary Sonny Perdue told reporters on Thursday.

* Mild weather is forecast to continue in the U.S. Midwest over at least the next 15 days. Above-normal rain over that term could help crops that have lacked moisture this month but may also delay some early harvesting.

* Wheat prices have been underpinned by concerns over dry weather in Australia and Argentina.

* Dry weather across most of Ukraine has delayed the sowing of winter grain for next year’s crop in one of the top Black Sea grain exporters, the nation’s weather forecaster said.

* Ukraine and its rival on Black Sea grain exports, Russia, are both looking for rains in coming weeks. In Russia, though, the sowing is still running ahead of the last year’s pace.

* Commodity funds were net buyers of CBOT corn, soybeans, soymeal and soyoil futures contracts on Thursday and net sellers of CBOT wheat futures, traders said.

MARKET NEWS

* Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration, while crude oil prices climbed on concerns that last weekend’s attacks on Saudi Arabia’s oil facilities still pose supply risks.

DATA/EVENTS (GMT)

0600   Germany   Producer Prices MM, YY   Aug
1400   EU        Consumer Confid. Flash   Sept
1600   US        Federal Reserve releases figures on the financial health of U.S. household in its Flow of Funds report for the second quarter

Grains prices at 0109 GMT

 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  485.75  -2.25    -0.46%   +0.31%       477.24  59
 CBOT corn   371.75  -1.00    -0.27%   +1.02%       371.88  63
 CBOT soy    891.25  -1.75    -0.20%   -0.28%       875.39  64
 CBOT rice   12.34   -$0.03   -0.20%   +0.53%       $11.81  83
 WTI crude   58.77   $0.64    +1.10%   -0.96%       $56.02  
 Currencies                                                 
 Euro/dlr    $1.105  -$0.002  -0.18%   +0.46%               
 USD/AUD     0.6782  -0.008   -1.19%   -1.19%

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 Sherry Jacob-Phillips)