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NEWS ADMIN

DATE

11/10/2018

NEWS PROVIDER

Nur Aisha Abd. Wahab

NEWS SOURCE

Agriculture.com

CATEGORY

HEADLINE

GRAINS-Soybeans slump on big harvest, China trade war worries

Agriculture.com (10/10/2018) - * Soybeans fall for 2nd day despite rain delays to harvest

* Corn, wheat slide as market awaits USDA report

* USDA seen raising soybean, corn harvest forecasts (Rewrites throughout with U.S. market open, adds quote, updates prices, changes byline, changes dateline from PARIS/SINGAPORE)

By Karl Plume

CHICAGO, Oct 10 (Reuters) - U.S. soybean futures fell for a second day on Wednesday, shedding more than 1 percent on expectations of a bumper U.S. crop and concerns about a protracted U.S.-China trade war that has already depressed demand for U.S. shipments.

Corn and wheat also eased as traders squared positions ahead of a U.S. Department of Agriculture (USDA) monthly report due on Thursday that is expected to show bigger supplies of both crops.

The selling pressure more than offset support stemming from rainy weather around the central United States that has slowed corn and soybean harvesting and flooded some newly planted winter wheat fields.

"Soybean traders are more concerned about USDA pushing the size of the crop up in the face of a prolonged trade war with China than they are about possible problems due to excessive rains," Arlan Suderman, chief commodities economist at INTL FCStone, said in a note to clients.

In a weekly report late on Tuesday, the USDA said soybeans were 32 percent harvested as of Sunday, below trade expectations and behind the five-year average of 36 percent.

The USDA pegged the corn harvest at 34 percent complete and said winter wheat seeding was 57 percent finished, both ahead of average.

The agency is expected to raise its U.S. corn and soybean yield and production forecasts on Thursday and increase its end-of-season U.S. and global stocks projections for corn, soy and wheat.

Chicago Board of Trade November soybean futures were 11-3/4 cents lower at $8.51-1/4 a bushel by 11:21 a.m. CDT (1621 GMT). Selling accelerated as the contract fell below its 10- and 50-day moving averages.

CBOT December corn was 1-3/4 cents lower at $3.62-3/4 a bushel, while December wheat was down 2-1/4 cents at $5.12-3/4 a bushel.

Soybeans were pressured by renewed threats from U.S. President Donald Trump on Tuesday to impose tariffs on $267 billion worth of additional Chinese imports.

The trade spat between the two countries has already stifled lucrative flows of U.S. soybeans to China, the world's largest importer of the oilseed.

Meanwhile, the corn market assessed Trump's decision to end a ban on summer sales of gasoline with 15 percent ethanol, a move seen as designed to reassure farmers hurt by the U.S.-China trade dispute and who have long sought relief for corn-based ethanol. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Emelia Sithole-Matarise and Jonathan Oatis)

Read more at https://www.agriculture.com/markets/newswire/grains-soybeans-slump-on-big-harvest-china-trade-war-worries