BEIJING: Chicago soybean futures rose on Monday, buoyed by renewed optimism over US-China trade talks after US President Donald Trump said he believed Beijing would agree to a soybean deal.
As of 0406 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.76% at $10.27-1/4 per bushel.
“Soybean futures are up marginally on some vague comments from Trump that he thinks he will strike a deal,” said Ole Houe, director of advisory services at IKON Commodities in Sydney.
“By now, most traders largely ignore these statements as the market has gotten used to the hot air with not substance.”
Trade talks between the US and China appeared to be back on track following weeks of fresh tariff threats and export restrictions, with Trump confirming last week that he would meet with Chinese President Xi Jinping in South Korea in two weeks.
Corn rose 0.06% to $4.22-3/4 a bushel on reports of yield shortfalls that have raised doubts about the most recent government forecast, despite expectations for a record US corn crop.
“Corn is up on continued talk that US corn yields not quite as good as expected, and with the lack of USDA/WASDE reports the market dare not sell it off yet,” Houe said.
A US government shutdown has deprived the market of key data, including corn and soybean harvesting progress and updated yield estimates.
“However, we believe it is likely there will be a strong corn sell off when the harvest is in the final weeks, as the US will have to start moving a record crop regardless of the final crop number,” Houe said.
Wheat added 0.5% to $5.06-1/4 a bushel on bargain-buying, as low prices have drawn renewed buying interest from importers. But ample global supplies capped gains.
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