US soyabean futures prices rose to the highest in more than two months on Tuesday, adding to gains from the previous session when further Chinese purchases and a lower-than-expected estimate of US stockpiles buoyed prices. Corn also advanced after rallying 4% on Monday when a quarterly US Department of Agriculture (USDA) grain stocks report pegged corn and soya inventories below traders' expectations.
Most active soyabean futures on the Chicago Board Of Trade were up 0.9% at $9.14-1/4 a bushel by 10:25 am CDT (1525 GMT). The price was the highest since July 22. Most active corn futures were up 0.6% at $3.90-1/2 and reached the highest since Aug. 12. "A lot of it is follow-through from yesterday," said Brian Hoops, president of US broker Midwest Market Solutions. Chinese firms bought up to 600,000 tonnes of US soyabeans on Monday as part of a tariff-free quota allotted to the importers to buy up to 2 million tonnes this week, two sources with knowledge of the deals said.
Traders hope the sales lead to Chinese firms buying more US soyabeans over the longer term, Hoops said, after China slashed imports during the ongoing US-China trade war. Short covering helped support soyabean and corn prices amid uncertainty about the size of the autumn US corn and soya harvests, traders said. The harvests are off to a slower than normal start, after heavy rains and historic flooding delayed planting in the spring. CBOT wheat futures eased in a turnaround from a seven-week high on Monday and were down 0.9% at $4.91-1/2 a bushel.