You are here

GRAINS-Soybean prices fall 1 percent as U.S.-China trade war escalates

SYDNEY, July 11 (Reuters) - U.S. soybean prices fell 1
percent on Wednesday as the U.S.-China trade war escalated with
the planned introduction of fresh tariffs by Washington.

FUNDAMENTALS
* The most active soybean futures on the Chicago Board of
Trade were down 1 percent at $8.63-1/4 a bushel by 0036
GMT, having closed little changed in the previous session.
* The most active corn futures were down 0.7 percent
at $3.58-1/4 a bushel, after ending the last session down 1.7
percent.
* The most active wheat futures dropped 0.6 to $4.89 a
bushel, near their session-low of $4.86-1/4 a bushel. Wheat
closed down 3.1 percent on Tuesday.
* The Trump administration raised the stakes in its trade
war with China on Tuesday, saying it would slap 10 percent
tariffs on an extra $200 billion worth of Chinese imports.

* The U.S. Department of Agriculture lowered its crop
condition ratings for corn and soybeans only slightly in the
latest week. Ratings for both crops remain near historical
highs. [nEMNI740T7
* Cooler, wetter weather is expected in the six-to-10-day
outlook. Much of the Midwest corn crop will be pollinating in
the coming weeks, a period when stressful weather can limit
yield potential.
* Spring wheat ratings in the USDA's weekly crop conditions
report were above trade expectations, fuelling expectations that
the agency may boost its U.S. wheat production forecast in a
monthly report later this week.

MARKET NEWS
* The euro got off to an unusually quiet start in Asia on
Monday, having posted its worst weekly performance in three
months, as investors await more developments and ratings
downgrades from Europe.
* Oil edged lower in volatile trading on Friday, posting a
second consecutive weekly loss as caution about Europe's debt
crisis and year-end positioning continued to spark selling into
rallies.
* A rally in U.S. stocks fizzled, leaving major indexes with
modest gains on Friday, as Wall Street was torn between hope
that U.S. economic data signals better times ahead and fear
Europe's debt crisis will engulf world economies.

Grains prices at 0036 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 489.00 -3.00 -0.61% -3.74% 511.25 45
CBOT corn 358.25 -2.50 -0.69% -2.38% 383.23 34
CBOT soy 863.25 -8.25 -0.95% -1.00% 935.76 37
CBOT rice 11.82 -$0.07 -0.59% -2.39% $11.72 42
WTI crude 73.84 -$0.27 -0.36% -0.01% $68.86 67
Currencies
Euro/dlr $1.173 -$0.001 -0.10% -0.16%
USD/AUD 0.7422 -0.004 -0.48% -0.59%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

(Reporting by Colin Packham
Editing by Joseph Radford)

© Copyright Thomson Reuters 2018. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Talk in Marketing

Most Recent Poll

What’s your main concern when scouting?