Soybeans fall for 2nd session, wheat eases from 1-week top

Chicago soybean futures slid for a second straight session on Thursday, although easing trade tensions between Washington and Beijing kept a floor under the market.

Wheat lost ground after climbing for the last four sessions to a near one-week top while corn dropped, having risen for the last two days.

The most-active soybean contract on the Chicago Board Of Trade fell 0.1 percent to $9.15-3/4 a bushel by 0341 GMT, having closed down by a similar level on Wednesday.

Wheat was down 0.3 percent at $5.20-3/4 a bushel, having gained 1.8 percent in the last four sessions, and corn declined 0.3 percent to $3.77-3/4 a bushel.

U.S. President Donald Trump said on Wednesday trade talks with China were “going along very well” as the world’s two largest economies try to resolve their seven-month tariff war ahead of a March 1 deadline for a deal.

“Soybean prices seem to have settled back into the range trading that has characterised the market since the start of December,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

“We continue to think the bean market has some potential to force itself out of this range. U.S. farmers’ planting choices, and the related U.S.-China trade negotiations, have the potential to create a hefty shift in the market’s collective view about oilseed supply.”

China, the world’s largest soybean buyer, imported 7.38 million tonnes of soybeans in January, up 29 percent from 5.72 million tonnes in December, figures from the General Administration of Customs of China showed. Argentina’s soy crop is expected to reach 52 million tonnes during the 2018-19 season, up from 50 million tonnes previously forecast, the Rosario Grains Exchange said on Wednesday.

Ukraine’s grain exports have risen to 30.17 million tonnes so far in the 2018/19 season, up from 24.88 million tonnes at the same point in the previous season, the agriculture ministry said on Wednesday.

Ukraine has said it harvested a record 70 million tonnes of grain last year, up from 61.3 million in 2017. The ministry said exports could rise to at least 47 million tonnes in the July 2018 to June 2019 season from 39.4 million the season before.

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

Grains prices at 0341 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  520.75  -1.50    -0.29%   +0.48%       518.18  50
 CBOT corn   377.75  -1.00    -0.26%   +1.34%       378.34  47
 CBOT soy    915.75  -0.75    -0.08%   +1.19%       914.30  48
 CBOT rice   10.28   $0.02    +0.19%   +0.10%       $10.58  30
 WTI crude   54.05   $0.15    +0.28%   +3.13%       $52.17  
 Currencies                                                 
 Euro/dlr    $1.128  -$0.005  -0.41%   +0.03%               
 USD/AUD     0.7111  0.002    +0.25%   +0.74%               
 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)