January 7, 2020 / 3:57 AM / a month ago

GRAINS-Soybeans up for second session on hopes of higher Chinese demand

    * Washington-Beijing trade deal seen boosting U.S. soybean
    * Ample supplies global soybean supplies cap gains
    * Wheat falls for 3rd session, corn firm after closing lower

 (Adds details, quote in paragraph 5)
    By Naveen Thukral
    SINGAPORE, Jan 7 (Reuters) - Chicago soybean futures rose
for a second session on Tuesday on hopes of increased Chinese
demand although gains were capped by expectations of a bumper
harvest in Brazil.
    Wheat slid for a third session, while corn gained ground
after closing lower on Monday.
    The most-active soybean contract on the Chicago Board Of
Trade was up 0.1% at $9.45-1/4 a bushel by 0339 GMT.
    Wheat lost 0.1% to $5.49-3/4 a bushel, having closed
down 0.8% when prices hit lowest since Dec. 26 at $5.46-3/4 a
bushel. Corn added 0.1% to $3.85 a bushel, having closed
down 0.5% in the previous session.
    "Expectations of Chinese buying are driving soybean little
higher, but on the other we have limited supply issues. There
are plenty of supplies in the market," said Phin Ziebell,
agribusiness economist at National Australia Bank.
    Optimism that China would accelerate purchases of U.S. farm
goods remained supportive for crop markets, particularly
soybeans, as officials from Beijing are expected to travel to
the United States to sign the Phase 1 trade deal.
    Abundant world supplies and forecasts of a bumper harvest in
Brazil is expected to cap the upside potential in prices.
    The U.S. Department of Agriculture attache in Brazil has
forecast the country's soybean production at 123.5 million
    Last year, the country produced a crop of 117 million
    The corn crop in Brazil's Rio Grande do Sul, the country's
No. 3 grain producing state, will likely be reduced by 20% from
initial estimates due to a severe drought, broker and
consultancy INTL FCStone said on Monday.
    Commodity funds were net sellers of CBOT corn, wheat and
soyoil futures contracts on Monday and net buyers of soybeans
and soymeal, traders said.
 Grains prices at 0339 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  549.75  -0.25   -0.05%   -1.87%       537.83  47
 CBOT corn   385.00  0.25    +0.06%                385.00  45
 CBOT soy    945.25  0.50    +0.05%                945.25  54
 CBOT rice   13.04   -$0.02  -0.15%   -0.95%       $12.84  47
 WTI crude   62.55   -$0.72  -1.14%   -0.79%       $59.78  
 Euro/dlr    $1.119  $1.119                                
 USD/AUD     0.6937  -0.001  -0.20%   -0.80%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Arun Koyyur)
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