Wheat near 5-month high on supply woes; soybeans rebound

Chicago wheat futures on Monday traded near last session's five-month highs, with the market
supported by concerns over tightening supplies and short-covering.
    
Soybeans rose for the first time in eight sessions, rebounding from Friday's more than two-month lows, although
uncertainty around a trade deal between Washington and Beijing limited gains.
    
The most active wheat contract on the Chicago Board Of Trade was unchanged at $5.41-3/4 a bushel, as of 0336 GMT,
having closed up 2.8% on Friday when prices hit a June 28 high of 5.46.
    
Soybeans rose 0.5% to $8.80-3/4 a bushel after hitting their lowest since Sept. 12 on Friday and corn added 0.2%
to $3.82 a bushel. 
    
"U.S. wheat exports continue at a pace a little ahead of expectations," said Tobin Gorey, director of agricultural
strategy at Commonwealth Bank of Australia. 
    
"And the market is also realising its worries about Argentina's wheat crops. Reports from Argentina suggest yields
in some regions are down by more than a third."
    
Asian millers are hoping for shipments from Argentina to ease tightness in supplies resulting from a drought in
Australia.
    
Heavy autumn rain is expected to lead to a fall in wheat sowings in France and Britain, raising early doubts over
prospects for next year's harvest in Europe, analysts said.

But winter grain sowings in Russia are in a better condition than at the same time a year ago and compared with the average
for the last couple of years, an official at the Hydrometcentre weather forecasting service told Reuters.
    
The soybean market is also tracking developments in the U.S.-China trade talks. The deal was now "stalled because of
Hong Kong legislation", news website Axios reported on Sunday, citing a source close to U.S. President Donald Trump's
negotiating team.

China said last week it would take "firm counter measures" if the United States continues to interfere in Hong Kong.
    
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Friday and net sellers of soybean and soymeal futures, traders said.

 Grains prices at 0336 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  541.75  0.00    +0.00%   +2.85%       518.96  79
 CBOT corn   382.00  0.75    +0.20%   +2.48%       387.73  53
 CBOT soy    880.75  4.00    +0.46%   -0.14%       919.83  26
 CBOT rice   12.49   $0.00   +0.00%   +0.77%       $12.06  82
 WTI crude   56.10   $0.93   +1.69%   -3.46%       $56.48  
 Currencies                                                
 Euro/dlr    $1.102  $0.000  +0.01%   +0.08%               
 USD/AUD     0.6774  0.001   +0.15%   +0.09%               
 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 Sriraj Kalluvila)