US soyabean futures rose for a sixth straight session on Monday on expectations that Beijing will meet the purchasing targets agreed in the Phase 1 trade deal with Washington, although concerns about a coronavirus outbreak in China capped gains.
The most active soyabean futures contract on the Chicago Board Of Trade was up 0.62% at $8.87-1/2 a bushel as of 10:13 a.m. CST (1613 GMT).
Corn futures fell 0.85% to $3.80-1/4 a bushel in mid-day trading as profit-taking saw corn paring most of its gains in the previous session. And technical selling and weakness in the corn market saw wheat futures shed 1.16% to $5.52-1/4 a bushel.
Chinese President Xi Jinping told US President Donald Trump that China would meet its Phase 1 trade deal purchasing targets despite delays linked to the coronavirus, White House adviser Larry Kudlow told Bloomberg Television.
Traders said that the commodities market is waiting for proof of fresh Chinese demand before pushing prices any higher. Some of those cues are expected to come from the closely watched US Department of Agriculture's monthly supply and demand forecast report, set to be released on Tuesday.
But the market's hopes for big news on Chinese demand for US soyabeans has cooled somewhat, said traders. The report will factor in the broad goals of the Phase 1 trade deal, but details of China's purchase commitments will not be part of it, the agency's top economist said last week.
Analysts said the reiteration of Chinese commitments to buy US supplies was underpinning gains. However, the coronavirus epidemic that has killed more than 900 people in top buyer China continued to weigh on prices. Traders also noted the competition US farmers are likely to face from an expected bumper crop from Brazil. For wheat, traders said that signs of drought moving into the US High Plains region should result in a boost in wheat futures going into the USDA report on Tuesday - unless the report shows a large drop in demand.