US corn and soyabean futures ticked higher on Friday as traders adjusted positions ahead of the year-end holidays. Lingering uncertainty over demand prospects created by a US-China trade deal loomed over the markets.
Crop prices increased after Washington and Beijing last week struck a Phase 1 trade deal that includes a commitment by Beijing to increase imports of US agricultural products. However, traders are skeptical that Chinese purchases can meet a US goal of $40 billion to $50 billion over the next two years, compared with $24 billion before the countries' trade dispute.
US President Donald Trump spoke with Chinese President Xi Jinping and claimed progress on issues from trade to North Korea and Hong Kong, but China said Xi accused the United States of interfering in its internal affairs.
Soyabeans are the most valuable US crop export to China, with sales of $12 billion in the year before the countries' trade war began. The dispute has slashed exports of US soyabeans and other farm products, as Beijing imposed retaliatory tariffs on American goods and turned to South America for soya instead.
African swine fever, which is fatal, has reduced China's need for soya to feed the world's largest hog herd.
The most-active soyabean contract on the Chicago Board of Trade (CBOT) was up 5 cents at $9.29-1/2 a bushel by 12:20 p.m. CST (1820 GMT). It was holding near Tuesday's five-week high of $9.31 and set for a third straight weekly rise.
Corn was up 1 cent at $3.87-1/2 a bushel, near a six-week high of $3.90-1/2 touched on Tuesday. Wheat was down 4-3/4 cents at $5.40-1/2 a bushel at the CBOT. Trading volumes were weak. "It's holiday trade," Setzer said.