Soybeans rise from near 2-month low, U.S.-China trade woes cap gains

Chicago soybeans ticked up on Thursday, recovering from a nearly two-month low touched in the previous session, although gains were limited by concerns that a

U.S.-China trade deal could be pushed into next year.

Wheat lost ground after three sessions of gains, while corn was trading nearly flat around Wednesday’s lowest in two months.

The most-active soybean contract on the Chicago Board Of Trade rose 0.2% to $9.06-1/2 a bushel by 0357 GMT. The contract hit its lowest since Oct. 1 at $9.04 a bushel on Wednesday.

Wheat lost 0.3% to $5.14 a bushel, having closed up 1.3% on Wednesday, and corn was unchanged at $3.66-3/4 a bushel, having dropped in the last session to $3.65-3/4 a bushel, the lowest since Sept. 18.

“Predicting the U.S.-China trade deal seems to be a mug’s game,” said Phin Ziebell, agribusiness economist at National Australia Bank. “Wheat is coming off a bit today after three days of gains, I think it is a bit of profit-taking.”

Soybeans are under pressure as U.S. President Donald Trump warned on Tuesday that his country would raise tariffs on Chinese imports if no deal was reached.

Completion of a “phase one” U.S.-China trade deal could slide into next year, trade experts and people close to the White House say, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

A fresh row between Washington and Beijing over U.S. bills intended to support protesters in Hong Kong and send a warning to China about human rights could complicate talks and delay the deal that investors had hoped to be inked by now.

The U.S. Department of Agriculture on Monday rated 52% of the winter wheat crop in good-to-excellent condition, down from 54% a week earlier.

In soybean market, the spotlight is turning to South America. Weather forecasts for beneficial rains in crop areas of Brazil and Argentina bolster prospects for corn and soybean production.

Commodity funds were net sellers of Chicago Board of Trade corn, soybean and soymeal futures contracts on Wednesday and net buyers of soyoil and wheat futures, traders said.

Grains prices at 0357 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  514.00  -1.50   -0.29%   +1.33%       512.78  55
 CBOT corn   366.75  0.00    +0.00%   -0.27%       383.24  25
 CBOT soy    906.50  1.50    +0.17%   -0.96%       936.14  40
 CBOT rice   12.13   $0.02   +0.21%   +0.29%       $12.04  74
 WTI crude   56.89   -$0.12  -0.21%   -0.28%       $55.59  
 Currencies                                                
 Euro/dlr    $1.107  $0.007  +0.62%   +0.61%               
 USD/AUD     0.6796  -0.004  -0.60%   -0.64%               
 
 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)