December 24, 2019 / 4:21 AM / a month ago

GRAINS-Soy slips from 6-week top; corn and wheat rangebound ahead of holiday

(Updates with background)

By Emily Chow

SHANGHAI, Dec 24 (Reuters) - U.S. soybeans fell on Tuesday, slipping from a six-week high hit in the previous session, as expectations of top consumer China ramping up soy purchases following an announcement of a Phase 1 Sino-U.S. trade deal stoked demand concerns.

The most active soybeans contract was down 0.2% at $9.31-3/4 a bushel around 0400 GMT, and was in line to snap a two-session rally.

China and the United States struck a so called “Phase 1” trade deal that includes a commitment by Beijing to increase purchases of U.S. agricultural products.

China’s top agriculture consultancy said last week that the country will make good on a pledge to buy more than $40 billion of American farm goods.

Corn and wheat, however, remained rangebound ahead of a public holiday on Wednesday.

The most active wheat contract was up 0.1% on Tuesday at $5.40 a bushel, while the most active corn futures contract was down 0.1% at $3.88-1/4 a bushel.

The U.S. Department of Agriculture reported on Monday that exporters sold 126,000 tonnes of soybeans for delivery to China during the 2019/2020 marketing year, while also changing destinations of 220,500 tonnes of soybeans to Netherlands and Saudi Arabia.

Meanwhile, export prices for Russian wheat rose for a sixth straight week last week due to a stronger rouble against the dollar and demand ahead of Russia’s New Year holiday, analysts said.

Russian state-controlled grain trader United Grain Company (UGC) has drafted a new strategy aimed at increasing its own grain purchases and trade to 8 million tonnes a year by 2024, Russian daily the Kommersant reported on Monday.

Reporting by Emily Chow; Editing by Rashmi Aich

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