May 7, 2020 / 11:20 AM / 23 days ago

GRAINS-Soybeans rebound on Chinese buying, wheat up on frost concerns

    * Soybeans up in 2 of 3 sessions as China buys U.S. cargoes
    * Corn firms as higher oil prices revive hopes for ethanol 

 (Adds details on oil prices, speculators positioning, quote;
updates prices)
    By Naveen Thukral and Sybille de La Hamaide
    SINGAPORE/PARIS, May 7 (Reuters) - Chicago soybean futures
rebounded on Thursday as Chinese cargo purchases supported the
market, although concerns over worsening relations between
Beijing and Washington kept a lid on prices. 
    Wheat rose on frost concerns in the Midwest while corn rose
as higher oil prices boosted hopes for ethanol demand. 
    The soybean and corn markets were also underpinned by
expectations of higher purchases by the feed industry as U.S.
meat demand jumps.
    "The U.S. reported a big jump in pork sales to China in
March – a good reason to think higher domestic use of soybeans
can persist," said Tobin Gorey, director of agriculture strategy
at Commonwealth Bank of Australia.
    The most-active soybean contract on the Chicago Board Of
Trade was up 0.8% at $8.39 a bushel by 1053 GMT, rising
for two of three sessions. It closed down 0.8% on Wednesday.
    Corn added 1% to $3.17-1/4 and wheat was up 1.4%
at $5.24-3/4 a bushel.
    "The cold will damage some of the recently emerged summer
crops in the Midwest and may raise some threat to soft wheat, as
well," brokerage Allendale said in a note, referring to
potential for frost and freezes in the Midwest this weekend.
    The U.S. Department of Agriculture announced that Chinese
buyers had booked deals for 378,000 tonnes of soybeans from the
United States.
    China said on Wednesday tariffs should not be used as
retaliation after U.S. President Donald Trump threatened the
country over its handling of the coronavirus.
    Oil prices jumped on Thursday on news that China's exports
unexpectedly rose last month, and on the back of U.S. output
cuts and the slow return of some activity in Europe.
    U.S. Energy Information Administration reported an increase
in ethanol production for the first time since March 4, while
ethanol stocks trimmed 725,000 BBLS.
    European Union wheat exporters are set to record their best
export season for years with record shipments expected from top
exporter France, traders said on Wednesday.
    For the current July 2019/June 2020 season, the EU
Commission this week raised its monthly forecast for exports of
soft wheat, or common wheat, from the EU plus Britain to 31.8
million tonnes, a four-year high. 
    Commodity funds were net sellers of CBOT corn, wheat,
soybean, soyoil and soymeal futures on Wednesday, traders said.

 Prices at 1053 GMT                                                     
                                  Last   Change    Pct      End  Ytd Pct
                                                  Move     2019     Move
  CBOT wheat                    524.75     7.25   1.40   558.75    -6.09
  CBOT corn                     317.25     3.00   0.95   387.75   -18.18
  CBOT soy                      839.00     6.50   0.78   955.50   -12.19
  Paris wheat December          189.00     1.00   0.53   188.75     0.13
  Paris maize Jun               165.00     0.25   0.15   168.50    -2.08
  Paris rape Aug                369.50    -1.00  -0.27   411.50   -10.21
  WTI crude oil                  26.14     2.15   8.96    61.06   -57.19
  Euro/dlr                        1.08     0.00  -0.09   1.1210    -3.80
 Most active contracts - Wheat, corn and soy US cents/bushel, Paris
 futures in euros per tonne

 (Reporting by Naveen Thukral; Editing by Aditya Soni; Editing
by Alison Williams)
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