SINGAPORE: Soybeans gained more ground on Wednesday, rising to a two-month high, underpinned by expectations of a de-escalation in the US-China trade conflict.
Wheat prices fell on the forecast of higher European output and corn futures slid.
Stock markets are enjoying a much-needed relief rally in Asia after US President Donald Trump said he had no plans to fire the Federal Reserve chief and hinted at lower China tariffs.
US Treasury Secretary Scott Bessent said on Tuesday he believes there will be a de-escalation in US-China trade tensions, but negotiations with Beijing have not yet started and would be a “slog”.
The most-active soybean contract on the Chicago Board of Trade (CBOT) gained 0.8% to $10.54-1/4 a bushel as of 0246 GMT.
It rose to $10.58, the highest since February 24, earlier in the session. Corn fell 0.2% to $4.82-1/2 a bushel and wheat lost 0.4% to $5.48 a bushel. China is by far the world’s biggest soybean importer.
Chicago soybeans higher, corn and wheat subdued
Gains in corn prices were curbed by forecasts of limited rainfall in the US Midwest, boosting expectations that farmers will be able to continue planting without major disruptions in the coming weeks.
On Tuesday, the European Union’s crop monitoring service MARS slightly raised its forecast for this year’s soft wheat yield in the region, but warned that dry conditions in the north of the bloc could hamper crop development.
Commodity funds were net sellers of CBOT corn and soymeal futures contracts on Tuesday, traders said. Funds were net buyers of soybeans and net even on wheat and soyoil contracts, traders said.
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