US soy futures rise on hopes for export deal; corn firm; wheat weak

CHICAGO: US soybean futures firmed for the third time in four sessions on Thursday, supported by a better-than-expected export report and hopes for a trade deal with China, traders said.

Corn futures also were trading in positive territory, with more rain in the U.S. Midwest sparking fresh concerns about planting delays in key growing areas.

But wheat was steady to slightly lower; giving up overnight gains on a mild technical setback.

China and the United States are in the middle of intense negotiations to end a months-long trade war that has rattled global markets. U.S. officials have cited progress in the talks on tricky aspects, including reforming practices such as  intellectual property theft and forced transfer of technology from U.S. companies doing business in China.

"It looks like some kind of a deal is going to come out," said Karl Setzer, operations manager for U.S. grain elevator company Citizens LLC. "We don't know what, but it actually looks a little positive."

The U.S. Agriculture Department on Thursday said weekly soybean export sales totaled 1.992 million tonnes, topping trade forecasts that ranged from 800,000 tonnes to 1.8 million tonnes.

The report showed soybean export sales to China in the week were 1.700 million tonnes, up from zero in the previous week.

At 11:16 a.m. CDT (1706 GMT) Chicago Board of Trade May soybean futures were up 5-1/4 cents at $9.04 a bushel. Soybean prices hit their highest since March 26.

Some buy stops were triggered when prices passed $9.00 a bushel, pushing the market to its session peak, Setzer added.

CBOT May wheat was flat at $4.71 a bushel while deferred contracts weakened. Wheat peaked at $4.77-1/2 a bushel shortly after the market reopened on Thursday morning but turned lower after failing to take out its March high of $4.78 a bushel.

Wheat export sales also were bigger than expected, totaling 1.018 million tonnes, while corn export sales of 630,200 tonnes fell below the low end of a range of analysts' expectations.

CBOT May corn was 2-1/4 cents higher at $3.64-3/4 a bushel.

"Rains will also spread into the eastern and southern Midwest, which will continue to slow corn planting there," Don Keeney, senior agricultural meteorologist for weather forecaster Radiant Solutions, said in a note to clients.