Chicago Board of Trade (CBOT) soyabean futures staged their strongest rally in a month on Thursday on better-than-expected export sales and fresh optimism about US-China trade talks, traders said.
CBOT November soyabeans were 10 cents higher at $9.25 per bushel while January futures, the most actively traded contract, closed up 9 cents at $9.36-1/2 a bushel.
CBOT December soyameal ended up $6.70 at $305.60 per short ton, while December soyaoil fell 0.32 cent to settle at 31.43 cents per pound.
US and Chinese officials said that they have agreed to cancel in phases the tariffs imposed during their months-long trade war as part of an interim deal. It remains unclear where and when an agreement could be finalized.
The US Department of Agriculture (USDA) reported net US soyabean export sales of 1.8 million tonnes last week, above trade expectations for 600,000 to 1.2 million tonnes. The sales included 956,300 tonnes bound for China.
Through its daily reporting system, the USDA also said private exporters sold 136,000 tonnes of US soyabeans to China and 133,000 tonnes of US soyameal to the Philippines, all for delivery in the 2019/20 marketing year.
Gains in soyabeans were capped by good harvest weather in the United States and rains in parts of Brazil and Argentina that have lessened concerns about early planting season dryness.
Grain traders were also adjusting positions ahead of the USDA's monthly supply/demand report on Friday, which is expected to show a decline in the US soya crop. The CBOT reported no deliveries against the November contract, which expires November 14.