US corn and soyabean futures weakened on Tuesday as traders awaited evidence that China has started to buy more US crops after the countries signed an initial trade deal last week.
Traders and farmers are keeping a close eye on China's demand following the agreement, which is meant to reduce tensions after nearly two years of a tit-for-tat tariff war. It included a pledge by China to purchase at least an additional $12.5 billion worth of US agricultural goods in 2020 and at least $19.5 billion over the 2017 level of $24 billion in 2021.
Chatter about possible Chinese buying of US corn helped lift corn futures on Friday, although there has been no official confirmation of deals, traders said.
Chicago Board of Trade most active corn was down 0.5% at $3.87-1/4 a bushel at 11:15 a.m. CST (1715 GMT), after rising 3.7% on Friday. The grain markets were closed for a holiday on Monday.
Wheat jumped 1.7% to $5.80-1/4 a bushel, and soyabeans fell 1.4% to $9.17 a bushel.
The US Department of Agriculture said weekly US soyabean export inspections were 1.2 million tonnes, at the top end of expectations for 600,000 to 1.2 million tonnes.
Weekly US export inspections were 435,129 tonnes for wheat and 345,859 tonnes for corn. Analysts had expected 400,000 to 600,000 tonnes for wheat, and 450,000 to 800,000 tonnes for corn.
But projections for a massive soyabean harvest in rival exporter Brazil added pressure on soyabean futures.
Wheat futures pushed higher amid concerns about tighter US supplies of soft red winter wheat, traded at the CBOT, traders said. Strong demand and rising prices in rival exporters also supported gains in the market.
Export prices of wheat in Russia, the world's top supplier, reached their highest level last week since the season began in July due to demand from major customer Egypt and risks related to Russian proposals to introduce an export quota.
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