US soyabean futures fell to a one-month low on Wednesday even as US President Donald Trump signed a "Phase 1" trade deal with China, the world's top soya importer, as traders remained uncertain about the terms of the pact.
Corn followed soyabeans lower, but wheat futures surged as rising global cash prices fueled technical buying, analysts said. As of 1:15 p.m. CST (1915 GMT), Chicago Board of Trade soyabeans for March delivery were down 13-3/4 cents at $9.28-1/2 per bushel after dipping to $9.28-1/4, the contract's lowest since Dec. 16, shortly after the US-China trade pact was announced on Dec. 13.
CBOT March corn was down 2 cents at $3.87 a bushel while March wheat was up 4-1/2 cents at $5.73, after reaching $5.78-3/4, its highest since November 2018. Soyabeans fell as traders remained skeptical about whether China would ramp up purchases of US soyabeans in the face of strong competition from South American supplies.
China committed to additional purchases of US agriculture products by $32 billion over two years, the deal said, including $12.5 billion above the corresponding 2017 baseline of $24 billion in 2020 and $19.5 billion above the baseline in 2021. CBOT soyabeans faced additional pressure as soyaoil futures fell 2%, pressed by sliding Malaysian palm oil futures and larger-than-expected US soyaoil stocks.
The National Oilseed Processors Association (NOPA) reported US soyaoil stocks at the end of December at 1.757 billion pounds, topping trade expectations. NOPA reported that its members crushed 174.8 million bushels of soyabeans in December, the second-most on record. Wheat futures shrugged off the weakness in soyabeans and rallied as signs of rising global cash prices attracted speculative buyers.
Egypt's main state wheat buyer on Tuesday purchased 240,000 tonnes of Russian and Romanian wheat in an international tender, at prices that were up about $3 to $4 per tonne from a previous tender on Jan. 8. Traders also continued to digest news that Russia's agriculture ministry is looking to set a non-tariff quota for grain exports of 20 million tonnes in January-June.
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