September 10, 2018 / 1:17 AM / 16 days ago

GRAINS-Soybeans fall as U.S.-China trade war threatens to escalate

    SYDNEY, Sept 10 (Reuters) - U.S. soybean futures edged lower
on Monday as market sentiment soured after U.S. President Donald
Trump threatened to escalate the trade war between Washington
and Beijing, potentially affecting global oilseed trading.
         
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board Of
Trade were down 0.3 percent to $8.41-1/4 a bushel by 0058
GMT, having firmed 0.6 percent on Friday.
    * The most active corn futures fell 0.4 percent to
$3.65-1/2 a bushel, having gained 0.2 percent in the previous
session.
    * The most active wheat futures were down 0.2 percent
at $5.10 a bushel, having closed down 0.5 percent on Friday. 
    * Soybeans under pressure after U.S. President Donald Trump
warned he has tariffs ready to go on $267 billion worth of
Chinese imports in addition to the $200 billion of its goods
already facing the risk of duties.
    * China imported 9.15 million tonnes of soybeans in August,
up 14 percent from July, customs data showed on Saturday, as
buyers in the world's top importer continued to buy from Brazil
after Beijing imposed tariffs on U.S. shipments.
    * The U.S. Agriculture Department on Friday morning said
weekly export sales of wheat were 379,800 tonnes, in line with
market forecasts but down from a week ago.
    * Market attention is turning toward a monthly U.S.
government crop report next Wednesday that will update official
corn and soybean harvest forecasts. 
    * Analysts expect the report will raise the government's
forecast for soybean production to 4.649 billion bushels, based
on yields of 52.2 bushels per acre. The corn production outlook
was expected to be trimmed, but still remain massive at 14.529
billion bushels, based on a yield of 177.8 bushels per acre.
         
    MARKET NEWS  
    *  The U.S. dollar rose broadly on Friday as U.S. job growth
surged in August, but investors remained jittery about a
possible escalation of the U.S.-Chinese trade conflict as U.S.
President Donald Trump threatened China with more tariffs.
  
    * Oil prices were steady on Friday, with U.S. crude slipping
on weak global equity markets while Brent inched up on
geopolitical factors, including violent protests in Iraq. 
    * Wall Street's major indexes fell on Friday as U.S.
President Donald Trump raised the possibility of additional
tariffs on Chinese imports and Apple Inc indicated that
some of its products could be subjected to such levies.  
    
    DATA AHEAD (GMT)
0145  China        Caixin manufacturing PMI final         Aug  
0750  France       Markit manufacturing PMI               Aug
0755  Germany      Markit/BME manufacturing PMI           Aug
0800  Euro zone    Markit manufacturing PMI               Aug
        
 Grains prices at  0058 GMT
 Contract        Last     Change    Pct chg   Two-day chg   MA 30
 CBOT wheat    510.00      -1.25     -0.24%        -0.73%  553.18
 CBOT corn     365.50      -1.50     -0.41%        -0.20%  372.43
 CBOT soy      841.25      -2.75     -0.33%        +0.24%  871.74
 CBOT rice      10.93     -$0.02     -0.18%        +0.46%  $10.90
 WTI crude      68.06      $0.31     +0.46%        +0.43%  $68.05
 Currencies                                                      
 Euro/dlr      $1.156     $0.001     +0.10%        -0.50%        
 USD/AUD       0.7112      0.001     +0.08%        -1.24%        
 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)
  
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