US soyabean futures stabilized on Wednesday after nearing a two-month low a day earlier, as traders weighed the chances for an initial trade accord between Washington and Beijing that could boost US farm exports.
Corn and wheat futures declined again after falling on Tuesday as traders adjusted positions ahead of the Thanksgiving holiday on Thursday, when US markets will close. Grain markets reopen for a shortened session on Friday.
Soyabean traders are closely watching negotiations in the US-China trade war because China is the world's biggest importer of the oilseed. It bought $12 billion worth of the crop from the United States in the year before the dispute began, but has since slashed imports.
Washington and Beijing are close to agreement on the first phase of a trade deal, US President Donald Trump said on Tuesday, after top negotiators from the two countries agreed to keep working on remaining issues.
"Without a trade agreement signed with China, there is not a lot of reason to buy soyabeans at this time other than a technical upward correction," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
The most-active soyabean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $8.83-1/2 a bushel at 11:40 a.m. CST (1740 GMT).
Recent liquidation of long positions in the market seems to be easing, traders said.
CBOT corn was down 0.8% at $3.75-1/4 a bushel while wheat dipped 0.5% to $5.28-1/2 a bushel.
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