CHICAGO: Chicago Board of Trade (CBOT) soybean futures closed higher on Tuesday, rallying from early declines on support from declining US crop ratings that raised uncertainty about production prospects, traders said.
Some traders also cited renewed optimism about US trade talks with top global soy buyer China.
White House economic adviser Larry Kudlow said China was expected to move forward with agricultural purchases from the United States as trade talks resumed between the two countries, with top officials slated to talk by telephone this week.
CBOT August soybeans settled up 7 cents at $8.86 per bushel, holding above chart support at the contract's 50-day moving average near $8.69-1/2.
CBOT August soymeal ended up $3.40 at $309.20 per short ton while August soyoil finished 0.02 cent higher at 28.01 cents per pound.
The US Department of Agriculture late on Monday rated 53pc of the US soybean crop in good to excellent condition, down from 54pc the previous week. The rating defied analyst expectations for a slight improvement.
Ahead of the USDA's monthly supply/demand report on Thursday, analysts surveyed by Reuters on average expected the government to lower its forecasts of US soybean yield, production and ending stocks for the 2019-20 marketing year.
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