BEIJING/HAMBURG: Chicago soybean and corn futures rose on Monday, supported by positive U.S.-China trade negotiations which raised the first sparks of hope for a resumption of U.S. exports to China.
Wheat was little changed, supported by buying interest as it hovered around life-of-contract lows on good U.S. harvest prospects ahead of closely-watched grain and oilseed world supply and demand estimates due on Monday from the U.S. Department of Agriculture (USDA).
The United States and China said on Monday they have agreed an initial deal to cut tariffs as they seek to end the trade war whose impact includes a stop on U.S. soybean and grain exports to China.
Chicago Board of Trade’s most-active CBOT soybeans rose 1.6% to $10.69-1/4 a bushel at 1107 GMT, corn rose 0.6% to $4.52-3/4 per bushel.
Wheat was unchanged at $5.21-3/4 a bushel, around life-of-contract lows also tested on Friday. Prices faced headwinds from weak U.S. exports and favourable weather across the U.S. Plains.
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Soybeans are the hardest-hit U.S. crop in the U.S.-China trade standoff, as China - the world’s top soy importer - continues to shift purchases to Brazil from the United States.
“The devil is in the detail but at last there is some sign of a possible de-escalation in the U.S.-China dispute which is supporting soybeans today and pulling up corn too,” one German trader said. “But I think the relatively moderate rise in Chicago soybeans today shows that a quick restart of U.S. soybean exports to China is not anticipated.”
“For Chicago wheat, the bearish mood remains amid a positive U.S. crop picture and limited export demand despite low U.S. export prices.”
Traders were positioning ahead of the USDA report on Monday, which is expected to give a generally positive outlook for U.S. soybean, corn and wheat crops.
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