GRAINS-Wheat up for Second Day on Supply Concerns, Bargain-Buying

June 22nd, 2018


Category: Uncategorized

( – Chicago wheat futures rose
for a second session on Thursday with prices underpinned by dry
weather reducing output in key exporters Russia and Australia.
Soybeans ticked up but concerns over U.S.-China trade
dispute kept a lid on the market, which dropped to its lowest in
almost 10 years on Tuesday.

The Chicago Board of Trade wheat futures are being
supported by dry weather cutting production in Russia, the
world’s biggest exporter, and Australia, the No.4 supplier.
Dryness in Russia and Australia comes after lack of rains
reduced production of Hard Red Winter wheat in the U.S. southern
The soybean market is facing headwinds from escalation in
U.S.-China trade spat.
U.S. President Donald Trump has threatened to impose a 10
percent tariff on another $200 billion of Chinese goods. China’s
commerce ministry described the threat as “blackmailing” and
said Beijing would fight back.
Trump’s threat followed his administration’s announcement
of tariffs on $50 billion of Chinese goods last week, which
triggered retaliatory tariffs by Beijing on a slate of U.S.
products, including soybeans and corn.
Tuesday’s sell-off in soybeans was also driven by
generally favourable weather in the Midwest crop belt that has
bolstered expectations for big U.S. corn and soy harvests.
However, there is uncertainty about forecast for July and
August, which are crucial months for U.S. crop development.
Commodity funds were net buyers of CBOT wheat and soyoil
futures contracts on Wednesday and net sellers of soybeans,
soymeal and corn, traders said.

Asian shares were subdued on Thursday as a lull in the
Sino-U.S. trade tussle helped calm nerves enough for the Nasdaq
to reach a record high, while tensions in the oil market grew
ahead of an OPEC meeting that may expand crude supply.

0645 France Business climate manufacturing June
1100 Bank of England announces rate decision
1230 U.S. Weekly jobless claims
1230 U.S. Philly Fed business index June
1300 U.S. Monthly home price index April
1400 U.S. Leading index May
1400 Euro zone Consumer confidence June

Grains prices at 0037 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 488.75 0.50 +0.10% +2.30% 511.13 40
CBOT corn 353.50 -0.75 -0.21% -0.70% 386.91 24
CBOT soy 890.50 1.00 +0.11% +0.17% 983.82 13
CBOT rice 12.65 $0.00 +0.00% -0.75% $12.00 64
WTI crude 65.62 -$0.09 -0.14% +0.85% $68.06 45
Euro/dlr $1.157 $0.000 +0.03% -0.13%
USD/AUD 0.7365 0.000 -0.03% -0.22%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential


Add New Comment

Forgot password? or Register

You are commenting as a guest.