You are here

GRAINS-Wheat slides more than 2 pct on U.S.-China row

* Wheat retreats for first time in four sessions
* Wheat falls on weakness in soybean prices
* Soybeans resume fall, down as much as 1.5 pct

By Colin Packham
SYDNEY, July 9 (Reuters) - U.S. wheat futures fell more than
2 percent on Monday as fears of a prolonged trade dispute
between the United States and China whipsawed grains markets.
Soybeans retreated 1 percent after jumping more than 4
percent in the previous session, while corn also slipped 1
percent.
The most active wheat futures on the Chicago Board of Trade
were down 1.5 percent at $5.07-3/4 a bushel by 0512 GMT,
having earlier hit a low of $5.03-1/2 a bushel. Wheat closed up
1.9 percent on Friday.
Analysts said wheat drew support late last week from
soybeans, which rallied sharply despite being the most likely
casuality from the ongoing Washington-Beijing trade conflict.
"Wheat rallied on the back of soybeans and as those prices
have fallen, wheat has followed suit," said Andrew Woodhouse,
grains analyst, Advance Trading.
The most active corn futures were down 1.1 percent at
$3.69 a bushel, having closed down 1.2 percent in the previous
session.
The most active soybean futures eased 1 percent to
$8.85-1/2 a bushel. Soybeans rebounded on Friday after nearing a
decade low, firming 4.5 percent to hit their highest since June
29 at $8.97-3/4 a bushel.
Friday's rally in soybeans came despite expectations that
China will buy less of the oilseed from the United States.
Beijing's extra 25 percent tariff on U.S. soybeans is
expected to curb Chinese demand for U.S. shipments and shift
more sales to Brazil, the world's top exporter. That prospect
has contributed to a five-year high in the spread between U.S.
and Brazilian prices.

Grains prices at 0512 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 507.75 -7.50 -1.46% +0.45% 515.44 60
CBOT corn 369.00 -4.00 -1.07% +1.23% 387.65 44
CBOT soy 885.75 -8.75 -0.98% +3.51% 948.94 44
CBOT rice 11.93 -$0.06 -0.50% +0.55% $11.68 51
WTI crude 74.11 $0.31 +0.42% +1.60% $68.42 72
Currencies
Euro/dlr $1.176 $0.001 +0.12% +0.60%
USD/AUD 0.7458 0.003 +0.36% +0.97%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

(Reporting by Colin Packham; editing by Richard Pullin)

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

Read more about

Talk in Marketing

Most Recent Poll

What best describes the state of your corn crop?