Soy slips from 6-week top; corn and wheat rangebound ahead of holiday
- China and the United States struck a so called "Phase 1" trade deal that includes a commitment by Beijing to increase purchases of US agricultural products.
- The most active wheat contract was up 0.2% on Tuesday at $5.40-1/2 a bushel, while the most active corn futures contract was up 0.1% at $3.88-1/2 a bushel.
- Russian state-controlled grain trader United Grain Company (UGC) has drafted a new strategy aimed at increasing its own grain purchases.
SHANGHAI/PARIS: US soybeans fell on Tuesday, slipping from a six-week high hit in the previous session, as expectations of top consumer China ramping up soy purchases following an announcement of a Phase 1 China-US trade deal stoked demand concerns.
The most active soybeans contract was down 0.5% at $9.25-1/4 a bushel around 1151 GMT, and was in line to snap a two-session rally.
China and the United States struck a so called "Phase 1" trade deal that includes a commitment by Beijing to increase purchases of US agricultural products.
China's top agriculture consultancy said last week that the country will make good on a pledge to buy more than $40 billion of American farm goods.
Corn and wheat, however, remained rangebound ahead of a public holiday on Wednesday.
The most active wheat contract was up 0.2% on Tuesday at $5.40-1/2 a bushel, while the most active corn futures contract was up 0.1% at $3.88-1/2 a bushel.
The US Department of Agriculture reported on Monday that exporters sold 126,000 tonnes of soybeans for delivery to China during the 2019/2020 marketing year, while also changing destinations of 220,500 tonnes of soybeans to Netherlands and Saudi Arabia.
Meanwhile, export prices for Russian wheat rose for a sixth straight week last week due to a stronger rouble against the dollar and demand ahead of Russia's New Year holiday, analysts said.
Russian state-controlled grain trader United Grain Company (UGC) has drafted a new strategy aimed at increasing its own grain purchases and trade to 8 million tonnes a year by 2024, Russian daily the Kommersant reported on Monday.
Morocco will suspend customs duty on soft wheat from Jan. 2 to April 30 to ensure regular supplies and stable prices in the domestic market, according to a draft decree seen by Reuters on Tuesday. The suspension of the 35% customs duty will be officially announced after a government meeting on Thursday.