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GRAINS-Soybeans set for 2nd weekly gain on U.S.-China trade deal hopes

SINGAPORE, Dec 7 (Reuters) - Chicago soybean futures rose on Friday, poised for their second weekly gain, after authorities in China said they were hopeful for a trade deal with the United States. FUNDAMENTALS * China on Thursday expressed confidence in striking a trade deal with the United States within their 90-day ceasefire period, praising the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping as highly successful. * The market came under pressure on Thursday on concerns over Sino-U.S. relations after the arrest of smartphone maker Huawei Technologies Chief Financial Officer Meng Wanzhou, which threatened to freeze talks on some form of trade truce. * Gains in the soybean market were capped by expectations of large production in South America. * Argentine soybean exports to China could jump to a record 14 million tonnes this season if the trade war between China and the United States continues, the Rosario grains exchange said on Thursday, as output rebounds from last year's drought. * There are forecasts of record soybean production in Brazil which is expected to reduce China's need for U.S. cargoes. * The U.S. Department of Agriculture confirmed private corn sales to Mexico totalling nearly 200,000 tonnes on Thursday. * Egypt's GASC bought 350,000 tonnes of Russian and Ukrainian wheat in the tender. There was no U.S. wheat offered. * Commodity funds were net sellers of Chicago Board of Trade corn, wheat, soybean, soymeal and soyoil futures contracts on Thursday, traders said. MARKET NEWS * Asian share markets tried to find their footing on Friday as speculation the Federal Reserve might be "one-and-done" with U.S. rate hikes helped salve some wounds after a punishing week. DATA AHEAD (GMT) 0700 Germany Industrial output Oct 0745 France Industrial output Oct 0745 France Trade data Oct 1000 Euro zone Revised GDP Q3 1000 Euro zone Employment Q3 1330 U.S. Nonfarm payrolls Nov 1330 U.S. Unemployment rate Nov 1500 U.S. Univ of Michigan sentiment index Dec 1500 U.S. Wholesale sales Oct Grains prices at 0106 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 515.75 0.25 +0.05% -1.29% 513.08 46 CBOT corn 382.50 -0.25 -0.07% -0.58% 377.71 62 CBOT soy 910.50 1.00 +0.11% -0.14% 881.49 69 CBOT rice 10.83 $0.00 +0.00% -1.32% $10.78 50 WTI crude 51.54 $0.05 +0.10% -2.55% $57.29 Currencies Euro/dlr $1.137 $0.003 +0.23% +0.16% USD/AUD 0.7230 -0.011 -1.46% -1.70% 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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