Soybeans hit two-week high on Chinese buying

• Corn was also buoyed on word China may increase agricultural buying to fulfil Phase 1 trade commitments laid out in January.
• Wheat dipped, pressured by concerns over the coronavirus crisis hitting world demand, but adverse US weather conditions supported prices.
• CBOT July wheat was down 2-1/4 cents at $5.20-1/4 a bushel. July corn was up 4 cents to $3.22.

CHICAGO: Chicago soybean futures climbed for a second session to a three-week high on Friday as Chinese demand underpinned prices and traders squared positions ahead of an upcoming supply and demand report due next Tuesday.

Corn was also buoyed on word China may increase agricultural buying to fulfil Phase 1 trade commitments laid out in January.

Wheat dipped, pressured by concerns over the coronavirus crisis hitting world demand, but adverse US weather conditions supported prices.

The most active soybeans contract on the Chicago Board of Trade was up 9 cents at $8.53-1/4 a bushel as of 11:00 a.m. (1700 GMT), after reaching $8.56-1/2, the highest since April 23.

CBOT July wheat was down 2-1/4 cents at $5.20-1/4 a bushel. July corn was up 4 cents to $3.22.

After a week of tense jockeying between Washington and Beijing over the origins and handling of the novel coronavirus pandemic, top US and Chinese trade representatives discussed the Phase 1 trade deal Thursday evening, with China saying it would work to meet agreed upon purchases, including agricultural goods like corn and soybeans.

"If China's going to ramp up the buying on Phase 1 because of Trump's pressure, that's gotta be bullish," said Charlie Sernatinger, global head of grain futures at ED&F MAN Capital Markets.

Analysts remain sceptical that China, the world's top soybean buyer, will meet targets, though the US Department of Agriculture said on Friday that private exporters reported the sale of another 120,000 tonnes of soybeans to unknown destinations for delivery in the 2019/20 marketing year.

The agency confirmed private sales of 686,000 tonnes of US corn to China on Thursday, for shipment in the current and upcoming marketing years. That followed several daily soybean sales announcements in recent days.

Traders are looking ahead to the USDA's World Agricultural Supply and Demand Report next Tuesday, which is expected to show stocks of wheat, corn and soybeans remain ample.

"This could be taking some stuff off the table ahead of WASDE. Not necessarily going long, but short covering," said Joe Davis, director of commodity sales at Futures International. "We're still looking at a massive carryout. It's not going to be bullish."

Global wheat demand is likely to suffer as the coronavirus outbreak curbs travel, reducing sales at restaurants and bakeries around the world.

Worries about US crop weather limited losses, as a cold snap across the Midwest could threaten newly planted corn and developing soft-red winter wheat, according to meteorologists.

Rain across Europe has strengthened wheat, but more is needed to stave off crop-crippling drought, analysts said.