SINGAPORE/PARIS: Chicago soybeans rose on Wednesday to recover some of the previous session’s losses, as Beijing’s confirmation that it was cutting tariffs on US farm goods put attention back on a trade truce between the countries.
Gains remained capped by the lack of large Chinese purchases of US crops since the truce, as well as wider losses in financial markets.
Chicago wheat and corn were little changed.
China will suspend retaliatory tariffs on US imports following last week’s meeting of their two leaders, Beijing confirmed on Wednesday, but imports of US soybeans will still face a 13 percent tariff.
The news spurred some gains for futures, shifting the focus back to what US officials have cited as a pledge by Beijing to buy tens of millions of metric tons of US beans, including 12 million over November and December, under last week’s truce.
But there was still widespread scepticism about such demand, particularly after market sources on Monday said Chinese soybean importers have stepped up purchases of cheaper Brazilian cargoes.
The suspension of the US Department of Agriculture’s flash export sales reports, which usually track large export volumes, amid a month-long government shutdown has also made it harder for market participants to confirm any sales to China.
“For soybeans, operators are waiting for concrete signs from China, while Brazilian soybeans are proving more competitive on the export market,” Argus analysts said in a note.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.65 percent at USD11.28-3/4 a bushel, as of 1237 GMT, approaching Monday’s 16-month peak.
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