January 29, 2019 / 2:03 AM / 3 months ago

GRAINS-Soybean prices fall as U.S.-China trade tensions mount

    SYDNEY, Jan 29 (Reuters) - U.S. soybean futures edged down
on Tuesday as traders worried that U.S. criminal charges against
China's Huawei Technologies Co Ltd would dent any prospect of a
trade deal between Washington and Beijing.
         
    FUNDAMENTALS  
    * The most active soybean futures on the Chicago Board of
Trade were down 0.3 percent at $9.20-3/4 a bushel by 0131
GMT, having closed down 0.2 percent on Monday.
    * The most active corn futures were down 0.1 percent
at $3.79-1/4 a bushel, after ending the previous session down
0.1 percent.
    * The most active wheat futures were down 0.2 percent
at $5.17-3/4 a bushel, having finished down 0.2 percent on
Monday. 
    * The United States on Monday announced criminal charges
against China's Huawei, escalating a fight with the world's
biggest telecommunications equipment maker and coming days
before trade talks between Washington and Beijing. Huawei did
not respond to requests for comment on the charges.
    * U.S. Commerce Secretary Wilbur Ross said the Huawei
charges are "wholly separate" from the trade negotiations.
    * U.S. Treasury Secretary Steven Mnuchin said the United
States expects to make significant progress this week in the
trade talks with Chinese Vice Premier Liu He, who will later
meet with President Donald Trump.
    * Weekly U.S. export inspections data added to bearish
sentiment in grains markets. The U.S. Department of Agriculture
reported export inspections of U.S. soybeans in the latest week
at 929,417 tonnes and corn inspections at 893,001 tonnes, both
down from the previous week and below trade expectations.

    * Soy industry group Abiove lowered its estimate of Brazil's
soybean crop to 117.9 million tonnes, from 120.9 million in
December.
    * The USDA plans to release several key grain reports on
Feb. 8 including quarterly U.S. grain stocks, winter wheat
seedings and a final report on 2018 crop production, the
department's chief economist told Reuters via email on Monday.

         
    MARKET NEWS  
    * The safe-haven yen firmed on Tuesday after the U.S.
Justice Department charged China's Huawei Technologies Co Ltd
with fraud, ratcheting up U.S.-Sino trade tensions and prompting
investors to ditch risky assets.  
    * Oil prices steadied on Tuesday, edging up from a near
two-week low in the previous session when prices fell around 3
percent on expectations of supply growth and a global economic
slowdown.  
    * U.S. stocks tumbled on Monday after warnings from
Caterpillar Inc and Nvidia Corp added to
concerns about a slowing Chinese economy and tariffs taking a
bite out of U.S. corporate profits.  
    
    DATA/EVENTS
0745          France            Consumer Confidence       Jan
1400          US                CaseShiller 20 MM SA      Nov
1500          US                Consumer Confidence       Jan
WASHINGTON, D.C. - U.S. Federal Reserve's Federal Open Market
Committee (FOMC) starts its two-day meeting on interest rates
(to Jan. 30)
        
 Grains prices at  0131 GMT
 Contract      Last   Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat  517.75    -1.00   -0.19%       -0.43%  517.78     43
 CBOT corn   379.25    -0.50   -0.13%       -0.26%  378.75     50
 CBOT soy    920.75    -2.50   -0.27%       -0.49%  909.08     60
 CBOT rice    10.71   -$0.01   -0.09%       +0.37%  $10.58     61
 WTI crude    52.14    $0.15   +0.29%       -2.89%  $49.45     50
 Currencies                                                      
 Euro/dlr    $1.142  -$0.001   -0.11%       +0.07%               
 USD/AUD     0.7145   -0.002   -0.28%       -0.52%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham; Editing by Joseph Radford)
  
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