LONDON: Chicago soybean futures were steady on Friday as the market waited for clearer indications on whether China will soon resume purchases from the United States.
The prospect of renewed buying by the world's top soybean importer received a major boost from a 90-day ceasefire in the trade dispute between the two countries.
"It is still not at all clear what will happen and when China will start to engage. The US Agriculture Secretary has said that it is 'yet to be determined' whether the tariffs on soybean imports will actually be removed," Jonathan Lane, trading director at UK merchant Gleadell, said.
The most-active soybean contract on the Chicago Board of Trade was down a marginal 0.05 percent at $9.09 a bushel at 1202 GMT.
There were some concerns that the arrest of smartphone maker Huawei Technologies' Chief Financial Officer Meng Wanzhou could harm relations between the United States and China.
She is set to appear in a Vancouver court on Friday for a bail hearing as she awaits possible extradition to the United States.
"The US-China deal still needs proper confirmation in the form of buying before the market can get real confident about progress," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.
Large production in South America could also help to limit any US sales to China.
Argentine soybean exports to China could jump to a record 14 million tonnes this season if the trade war between China and the United States continues, the Rosario grains exchange said, as output rebounds from last year's drought.
There are also forecasts of record Brazilian soybean output, which is expected to further reduce China's need for US supplies.
Wheat prices edged higher with the most active CBOT contract up 0.5 percent at $5.18-1/4 a bushel.
Egypt's state grain buyer, the General Authority for Supply Commodities, has bought 350,000 tonnes of wheat, traders said on Thursday, adding the total comprised 290,000 tonnes from Russia and 60,000 tonnes from Ukraine.
Dealers said payment difficulties remain a concern and there was no US wheat offered at the tender.
March wheat on Paris-based Euronext rose 0.25 percent to 202.50 euros a tonne. CBOT's most active corn contract was up 0.3 percent at $3.83-3/4 a bushel.
The US Department of Agriculture confirmed private corn sales to Mexico totalling nearly 200,000 tonnes on Thursday.
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