CHICAGO: US soybean futures firmed on Thursday, supported by hopes that stepped-up exports to Europe would make up for business lost in a trade fight with China, traders said.
Corn and wheat futures also were trading in positive territory, with wheat led higher by MGEX spring wheat contracts following disappointing results from an annual crop tour.
Soybeans, corn and wheat all were trending below session highs, with investors locking in profits from a recent rally.
"We have gapped higher," said Jim Gerlach, president of A/C Trading. "Things had maybe gone too far too fast. This is a little bit of back and fill."
At 10:58 a.m. CDT, Chicago Board of Trade November soybean futures were up 3-1/4 cents at $8.79 a bushel. The most-active contract, which was on track for its third straight day of gains, had earlier peaked at its highest since July 9.
US President Donald Trump said on Wednesday that Europe has agreed to import more American soybeans, aiding US farmers as the two sides launch talks on cutting other trade barriers, easing the threat of a transatlantic trade war.
"Europe is likely to buy more US soybeans and it will offset some demand destruction that we have seen in China because of higher tariffs," said one India-based agricultural commodities analyst.
But many observers in Europe considered the moves as symbolic as the EU does not impose tariffs on soybean imports, limiting the impact on the futures market.
The US Agriculture Department on Thursday morning said weekly export sales of soybeans totaled 1.502 million tonnes, topping trade forecasts that ranged from 400,000 to 900,000 tonnes.
CBOT September corn futures were up 3-1/2 cents at $3.62-3/4 a bushel.
CBOT September soft red winter wheat was 3/4 cent higher at $5.43-1/2 a bushel while K.C. hard red winter wheat for September delivery was 1/2 cent higher at $5.41-1/4 a bushel.
MGEX spring wheat rose 7 cents to $5.94-1/4 a bushel. The front-month MGEX contract hit its highest since June 1.
Results from the second day of the Wheat Quality Council's tour of key US spring wheat production areas showed below-average hard red spring wheat yield prospects in northern areas of North Dakota with scouts noting that hot weather may have reduced the crop's potential.
The tour's findings contrasted with the latest forecast from the US Department of Agriculture, which projected North Dakota's spring wheat yield at a record-tying 48.0 bushels per acre.
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