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Soybeans ease from 3-month top, Chinese buying limits losses

Chicago soybean futures slid on Thursday after climbing to their highest in almost three months although expectations of Chinese buying of U.S. supplies provided a floor under the market.

Wheat edged higher, while corn lost ground for a second straight session in positioning ahead of a U.S. Department of Agriculture (USDA) report on global supplies and demand later in the day.

FUNDAMENTALS
* The most-active soybean contract on the Chicago Board Of Trade (CBOT) lost 0.2% at $9.21-1/2 a bushel by 0052 GMT, having climbed to its highest since July 15 at 9.31-1/2 a bushel on Wednesday.

* Wheat added 0.1% to $5.00-3/4 a bushel and corn gave up 0.3% to $3.93-1/4 a bushel.

* The soybean market is finding support after the Financial Times reported that the team of China’s lead trade negotiator had offered to boost annual purchases of soybeans to 30 million tonnes compared with 20 million at present as the two countries seek to resolve their trade dispute.

* Vice Premier Liu He, China’s top trade negotiator, is scheduled to travel to Washington for their next round of trade talks on Oct 10-11.

* The market is monitoring a winter storm brewing in the northern U.S. Plains and Rocky Mountains that is expected to bring freezing temperatures late this week into the Dakotas, Nebraska and portions of Minnesota and Iowa.

* The storm could potentially damage corn and soybean crops.

* Ahead of the USDA’s monthly supply/demand reports, analysts surveyed by Reuters on average expected the government to lower its estimates of U.S. 2019/20 yield, production and ending stocks for both corn and soybeans.

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

MARKET NEWS
* U.S. stock futures tumbled and the safe haven yen and the Swiss franc gained in early Asian trade on Thursday after a media report that the United States and China had made no progress in deputy-level trade talks earlier in the week.

Grains prices at 0052 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  500.75  0.50    +0.10%   +2.35%       481.92  70
 CBOT corn   393.25  -1.00   -0.25%   +1.61%       373.28  67
 CBOT soy    921.50  -2.25   -0.24%   +0.68%       889.58  69
 CBOT rice   12.00   -$0.01  -0.04%   +3.05%       $12.00  59
 WTI crude   52.24   -$0.35  -0.67%   -0.74%       $55.76  
 Currencies                                                
 Euro/dlr    $1.098  $0.003  +0.24%   +0.09%               
 USD/AUD     0.6717  -0.001  -0.16%   -0.21%

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 Uttaresh.V)

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