You are here

GRAINS-Wheat eases on large supply; soy hesitant on trade talks

* Ample world wheat supply weighs despite low U.S. planting * Soybeans, corn hesitant as U.S.-China resume trade talks * Grain markets turn attention from Friday's USDA data * Graphic: Commodity prices in 2019: https://tmsnrt.rs/2Tku3Tn (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Feb 11 (Reuters) - Chicago wheat futures eased on Monday as ample global supplies outweighed an estimate of lower U.S. acreage, while soybeans and corn were little changed as investors awaited news from the latest U.S.-China trade negotiations. Wheat had found support on Friday from a U.S. Department of Agriculture (USDA) estimate pegging the U.S. winter wheat area for this year's harvest at 31.290 million acres - its lowest since 1909. However, the agency estimated U.S. quarterly and end-of-season wheat stocks at the high end of analyst forecasts, while also raising its estimates for wheat production and exports in top supplier Russia. "U.S. growers have now cut their wheat planting by more than a quarter over the past five years," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "While that underwrites a smaller crop in season 2019, the major issue right now remains the sizeable U.S. inventories accumulated from past crops. The market needs more signs that inventory is being cut before prices can rally." Traders have been awaiting an upturn in U.S. wheat exports as supplies dwindle in Russia. U.S. wheat scored a 120,000-tonne sale to Egypt on Friday as part of a tender purchase by the world's biggest wheat importer, but the market is looking for signs of a stronger trend, analysts said. The most-active wheat contract on the Chicago Board of Trade lost 0.6 percent to $5.14 a bushel by 1214 GMT. CBOT soybeans inched down 0.1 percent to $9.13-3/4 a bushel while corn ticked down 0.23 percent to $3.73-1/2 a bushel. U.S. soybean supplies as of Dec. 1 were the biggest on record as demand for the oilseed waned amid the trade war between the United States and China, the USDA said on Friday as part of a series of crop reports. But the data, some of which had been delayed by a month-long U.S. government shutdown, brought few surprises and the market's focus was now turning to this week's U.S.-China trade talks. A new round of negotiations began in Beijing on Monday, after the most recent talks concluded in Washington last week without a deal. Soybeans are the most valuable U.S. agricultural export to China, making the market sensitive to any developments in the trade dispute. Recent showers in Brazil have eased crop concerns after dry weather led forecasters to cut their production estimates for the ongoing soybean harvest. Prices at 1214 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 514.00 -3.25 -0.63 503.25 2.14 CBOT corn 373.50 -0.75 -0.20 375.00 -0.40 CBOT soy 913.75 -0.75 -0.08 895.00 2.09 Paris wheat Mar 202.75 -0.25 -0.12 203.25 -0.25 Paris maize Mar 177.00 0.50 0.28 180.25 -1.80 Paris rape Feb 371.50 -0.50 -0.13 365.25 1.71 WTI crude oil 52.29 -0.43 -0.82 45.41 15.15 Euro/dlr 1.13 0.00 -0.17 1.1469 -1.40 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Dale Hudson)

© Copyright Thomson Reuters 2019. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Talk in Marketing

Most Recent Poll

How many 2019 inputs did you buy in 2018?