January 9, 2020 / 4:02 AM / a month ago

GRAINS-Soybeans up for 2nd session as easing U.S.-Iran tensions support

    * Soybeans up as U.S., Iran show signs of desire to avoid conflict
    * Market eyes U.S. supply-demand report for price direction

 (Recasts, added quote in paragraph 4)
    By Naveen Thukral
    SINGAPORE, Jan 9 (Reuters) - Chicago soybean futures rose for a second
session on Thursday, with prices supported by signs of de-escalation in tensions
between Iran and the United States, although expectations of a record crop in
Brazil limited gains.
    Wheat and corn futures edged higher. 
    U.S. President Donald Trump on Wednesday tempered days of angry rhetoric and
suggested Iran was "standing down" after it fired missiles at U.S. forces in
Iraq overnight, as both sides looked to defuse a crisis over the U.S. killing of
an Iranian general. 
    "Easing of tensions in the Middle east is definitely supporting prices,"
said Ole Houe, director of advisory services at brokerage IKON Commodities in
Sydney.
    Ample supplies from South America is likely to weigh on prices although a
recovery in Chinese demand could limit the downside, Houe added. 
    The most-active soybean contract on the Chicago Board Of Trade was up
0.1% at $9.47-3/4 a bushel, as of 0325 GMT, having firmed 0.3% on Wednesday.
    Wheat added 0.5% to $5.55-1/2 a bushel, and corn gained 0.1% at
$3.84-3/4 a bushel.
    Grains and oilseed markets are focused on a supply-demand report to be
released on Friday by the U.S. Department of Agriculture (USDA). It could
include a revision to the U.S. corn harvest after adverse weather conditions.

    Soybean demand in China, by far the world's biggest soybean buyer, is
expected to recover this year from the damage caused by African swine fever in
2019. 
    Grain traders are also waiting for more details on the Phase 1 U.S.-China
trade deal due to be signed next week, which calls for bigger Chinese purchases
of U.S. agricultural goods.
    Brazil, which is on track for a record soybean crop this year, could lose
some gains it made in the global market during the U.S.-China trade war in the
event that the two countries close a deal ending the dispute, a Brazilian
Agriculture Ministry official said on Wednesday.
    Commodity funds were net buyers of CBOT wheat, soybean and soymeal futures
contracts on Wednesday, net sellers of soyoil and net even in corn, traders
said.
    
 Grains prices at 0325 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  555.50  2.75     +0.50%   +1.00%       540.33  60
 CBOT corn   384.75  0.50     +0.13%   +0.00%       383.07  46
 CBOT soy    948.50  1.25     +0.13%   +0.40%       921.46  60
 CBOT rice   13.04   -$0.03   -0.23%   -0.11%       $12.88  47
 WTI crude   60.10   $0.49    +0.82%   -4.15%       $59.92  
 Currencies                                                 
 Euro/dlr    $1.112  -$0.003  -0.31%   -0.69%               
 USD/AUD     0.6871  0.000    +0.04%   -0.98%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
  
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