US soyabean, corn and wheat futures rose on Thursday as recent declines have spurred demand for imports of all three commodities, traders said.
Bargain buying and short-covering contributed to the bullish tone following a sharp sell-off across the commodities market as the coronavirus pandemic roiled demand.
"None of the major commodities have a strong story, but recent losses have been sharp, and few speculators want to hold onto big short positions at these price levels amid the possibility that China might step up purchases," Arlan Suderman, chief commodities economist at INTL FCStone, said in a note to clients.
China is preparing to buy more than 30 million tonnes of crops for state stockpiles to help protect itself from supply chain disruptions caused by the coronavirus pandemic and make good on pledges to buy more US crops, three sources told Reuters.
China plans to add about 10 million tonnes of soyabeans, 20 million tonnes of corn and 1 million tonnes of cotton to its state reserves, said two of the sources, who were briefed on the government plan.
At 10:12 a.m. CDT (1512 GMT), Chicago Board of Trade July soyabean futures were up 5-3/4 cents at $8.48-1/4 a bushel.
CBOT July soft red winter wheat was up 1-1/2 cents at $5.45-1/4 a bushel.
Saudi Arabian grain importer SAGO has issued an international tender to buy 655,000 tonnes of wheat, for delivery in July and August, the state-run body said in a statement on Thursday.
CBOT July corn was 2-1/2 cents higher at $3.27-1/4 a bushel.
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