HAMBURG: Chicago soybeans and corn rose on Tuesday as dealers focused on talks to solve the US-China trade dispute, while cuts in forecasts for Brazil's soy crop also supported.
Markets have been hoping for a deal that will reopen the door for US exports to China, the world's largest soybean importer.
"Soybeans and corn are seeing a rebound today as markets focus on the hugely-important US-China trade talks," said Matt Ammermann, commodity risk manager with INTL FCStone. "Wheat is weakened by the continued presence of Russia in export markets."
Chicago Board of Trade March soybeans were up 0.5 percent at $9.09-1/2 a bushel at 1217 GMT, after falling about 1 percent on Monday.
March corn rose 0.6 percent to $3.75-1/4 a bushel. March wheat fell 0.1 percent to $5.17-1/4 a bushel.
"The sharp falls in soybeans and corn on Monday are being regarded as overdone, with the large among of data issued by the USDA (US Department of Agriculture) on Friday something of a non-event," Ammermann said.
"The US-China talks in the Chinese capital are in a final phase with not much time left before the March 1 deadline. I think many in the soybean and corn market do not want to sell substantially ahead of any presidential tweet about the China trade talks."
US officials arrived in Beijing on Tuesday for talks this week about a deal ahead of a March 1 deadline.
"China has been buying US soybeans again recently and the market likes that - now we just need to see all these commitments actually ship," Ammermann said.
Consultancy AgRural on Monday cut its forecast for Brazil's soybean crop this season to 112.5 million tonnes, down from 116.9 million tonnes last month after heat and dryness.
"For soybeans the main worry is about the Brazilian crop as it is too early to talk about US planting," said a Singapore-based trader.
Wheat fell despite news on Monday of new US wheat sales.
Russia's government said on Monday it did not plan to impose restrictions on grain exports.
Speculation that Russia, the world's largest wheat exporter, could limit exports later in the current season have supported global wheat prices in recent months.
"News the Russian government does not plan restrictions on grain exports is weakening wheat as competition from Russia remains even though Russia is losing competitiveness," Ammermann said. "US wheat exports have been recovering but more demand is still needed."
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