Soybeans rebound on Chinese buying, wheat up on frost concerns

• Wheat rose on frost concerns in the Midwest while corn rose as higher oil prices boosted hopes for ethanol demand.

SINGAPORE/PARIS: Chicago soybean futures rebounded on Thursday as Chinese cargo purchases supported the market, although concerns over worsening relations between Beijing and Washington kept a lid on prices.

Wheat rose on frost concerns in the Midwest while corn rose as higher oil prices boosted hopes for ethanol demand.

The soybean and corn markets were also underpinned by expectations of higher purchases by the feed industry as US meat demand jumps.

"The US reported a big jump in pork sales to China in March - a good reason to think higher domestic use of soybeans can persist," said Tobin Gorey, director of agriculture strategy at Commonwealth Bank of Australia.

The most-active soybean contract on the Chicago Board Of Trade was up 0.8% at $8.39 a bushel by 1053 GMT, rising for two of three sessions. It closed down 0.8% on Wednesday.

Corn added 1% to $3.17-1/4 and wheat was up 1.4% at $5.24-3/4 a bushel.

"The cold will damage some of the recently emerged summer crops in the Midwest and may raise some threat to soft wheat, as well," brokerage Allendale said in a note, referring to potential for frost and freezes in the Midwest this weekend.

The US Department of Agriculture announced that Chinese buyers had booked deals for 378,000 tonnes of soybeans from the United States.

China said on Wednesday tariffs should not be used as retaliation after US President Donald Trump threatened the country over its handling of the coronavirus.

Oil prices jumped on Thursday on news that China's exports unexpectedly rose last month, and on the back of US output cuts and the slow return of some activity in Europe.

US Energy Information Administration reported an increase in ethanol production for the first time since March 4, while ethanol stocks trimmed 725,000 BBLS.

European Union wheat exporters are set to record their best export season for years with record shipments expected from top exporter France, traders said on Wednesday.

For the current July 2019/June 2020 season, the EU Commission this week raised its monthly forecast for exports of soft wheat, or common wheat, from the EU plus Britain to 31.8 million tonnes, a four-year high.

Commodity funds were net sellers of CBOT corn, wheat, soybean, soyoil and soymeal futures on Wednesday, traders said.