SINGAPORE/HAMBURG: Chicago soybeans and corn rose on Monday, supported by expectations of purchases from China as US President Donald Trump and Chinese President Xi Jinping are set to meet later this week. Wheat and corn were also supported by firmer oil prices, which rose after the United States and Iran failed to reach a peace deal.
Chicago Board of Trade most-active soybeans rose 1.1percent to USD12.21-1/2 a bushel at 1054 GMT. Wheat rose 1percent to USD6.25-1/4 a bushel, corn rose 0.6 percent to USD4.74-1/2 a bushel. Analysts expect China to make a small “goodwill” soybean purchase ahead of Trump’s visit to China between May 14 and 15.
China could also agree to more purchases of US agricultural products at the meeting. “The market is waiting to see if China makes new promises to buy more US soybeans, but the court action cancelling Trump’s import tariffs may have taken the pressure off the Chinese to buy more,” one European trader said. Oil prices jumped over 2percent on Monday as the US and Iran failed to agree to a peace proposal drafted by Washington, while the Strait of Hormuz remained largely closed, keeping global energy supplies tight.