CHICAGO: Chicago Board of Trade soybean futures rallied on Friday, on hopes that China’s move to ease some Covid-19 curbs might spur economic activity and boosting demand for goods including soybeans, traders said.

China on Friday shortened quarantine by two days for close contacts of infected people and for inbound travellers, and removed a penalty for airlines for bringing in too many cases. CBOT January soybeans settled up 27 cents at $14.50 per bushel. For the week, the contract fell 12-1/4 cents a bushel. CBOT December soyoil settled up 0.88 cent at 76.97 cents per lb. Earlier in the session, prices hit 78.64 cents per lb, the highest since June 9. Soyoil and soybeans also drew support on Friday as US crude oil futures rose. Soy futures sometimes follow trends in energy markets given soyoil’s role as the main US feedstock for biodiesel fuel.

CBOT December soymeal ended up $3.3 at $407.4 per short ton.

The dollar also dipped for a second trading day, bolstering agricultural commodities, as a weaker dollar is typically seen as making US goods more competitive on the global market, traders said.Reuters

Meanwhile, Chicago Board of Trade corn futures rose on Friday, underpinned by strong commodities and equities markets, and a weakening US dollar, traders said. Strength in crude oil also lent support to the corn market on the day.

Corn sometimes follows trends in crude oil, due to its role as the main US feedstock for ethanol fuel. CBOT December corn settled up 4-3/4 cents at $6.58 per bushel. For the week, the contract fell 23 cent a bushel.

The dollar dipped for a second trading day, as investors bet that peaking US inflation will prompt the Federal Reserve to hold back interest rate hikes.

That, in turn, bolstered agricultural commodities, as a weaker dollar is typically seen as making US goods more competitive on the global market, traders said.