US soyabean futures rebounded on Monday from steep declines in the previous session as hopes for improved exports to China outweighed worries about rising tensions in the Middle East.
Corn and wheat futures declined in a technical-selling and profit-taking retreat from multi-month highs posted last week and as investors look ahead to key US Department of Agriculture (USDA) supply and demand data due later this week.
Geopolitical tensions after the United States killed an Iranian general erased new year gains for world stocks while safe-haven gold climbed to a seven-year high and oil jumped to its highest since September.
Developments in the Middle East overshadowed an initial trade accord between Washington and Beijing that had buoyed crop markets last month. Optimism that China would accelerate purchases of US farm goods remained supportive for crop markets, particularly soyabeans, as officials from Beijing are expected to travel to the United States next week to sign a Phase 1 trade deal.
Chicago Board of Trade March soyabeans rose 4-1/2 cents to $9.35 a bushel by 11:30 a.m. CST (1730 GMT) following a 1.5% drop on Friday.
CBOT March corn declined 1-1/2 cents to $3.85 a bushel after failing to hold technical chart support at its 50- and 100-day moving averages.
CBOT March wheat shed 3-3/4 cents to $5.50-3/4 a bushel after rising last week to the highest point for a most-active contract in more than 16 months. Grain markets are awaiting further fundamental direction from USDA crop estimates this Friday. The Jan. 10 data will give further indications about the size of last year's corn harvest, delayed by cold, wet weather, as well as projections of world grain supply and demand. Rainfall alleviated dry conditions in Brazil, the world's biggest soyabean exporter, which also curbed Chicago grain prices.
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