PARIS/BEIJING: Chicago wheat, corn and soybean futures rose on Tuesday, supported by brisk US exports, a weaker dollar before an expected US interest rate cut and hopes of progress in US-Chinese trade talks.
The most-active wheat contract on the Chicago Board of Trade was up 0.8 percent at USD5.29 per bushel by 1238 GMT. Wheat futures were rising for a fourth session as they recovered from contract lows last week.
On Monday, the US Department of Agriculture reported weekly export inspections of US wheat at 755,073 metric tons, well above trade estimates.
Competitive pricing from US suppliers and delays in shipments from the Black Sea have prompted Asian flour millers to ramp up imports of US wheat, according to grain traders.
News that Russia, the world’s largest wheat exporter, will nearly triple its wheat export duty from September 17 has also boosted the prospects of rival suppliers.
A fall in the dollar index to a two-month low, as investors anticipated the US Federal Reserve will kick off a series of rate cuts on Wednesday, helped maintain the export competitiveness of US grain.
“Investors are feeling very optimistic ahead of tomorrow’s Fed policy decision,” Peak Trading Research said in a note, adding a dovish tone in the central bank’s comments could further weaken the dollar and support agricultural futures.
CBOT corn gained 0.8 percent to USD4.26-3/4 a bushel, while soybeans added 0.7 percent to USD10.49-3/4 per bushel. Monday’s weekly export inspections data also showed a bigger than anticipated corn volume.
Strong export demand has helped corn prices hold up in the face of a record expected US harvest getting under way.
Doubts over how strong US yields will turn out have also lent some support. Weekly USDA data on Monday showed weaker crop ratings for corn and soybeans.
The soybean market drew comfort from news of a call to be held between US President Donald Trump and Chinese President Xi Jinping this Friday.
China, the world’s top soy buyer, has so far avoided US supplies for the 2025/26 crop year as the countries remain locked in a trade dispute.
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