Chicago soyabean futures rallied more than 1 percent on Thursday as investors played down the immediate impact of proposed Chinese tariffs on US supplies, a move that had sent prices plunging a day earlier. US winter wheat futures jumped as much as 2 percent, lifted by worries that cold temperatures could stress crops in the southern Plains. Corn futures also gained as spring sowings could get off to a slow start due to soggy weather.
Prices for both soyabeans and corn stayed within ranges established during Wednesday's session, when China proposed imposing tariffs on US soyabeans. China buys about two-thirds of globally traded soyabeans. Chicago Board of Trade May soyabeans were up 16 cents to $10.31-1/4 per bushel, recovering a portion of the declines notched in the previous session. CBOT May corn was up 7 cents at $3.88 per bushel as of 11:58 am CDT (1658 GMT).
Traders doubted whether China could shun US soyabeans given its huge import requirements, while investors more widely saw signs the two sides may choose to negotiate. However, the uncertainty created by the Chinese-US trade row could still weigh on US prices, some analysts said. CBOT May wheat was up 8-1/2 cents to $4.64-1/4 per bushel and K.C. May wheat was 11 cents higher at $4.97.
Sub-freezing temperatures forecast on Friday night in the Plains would add to wheat crop stress in a region already suffering from dry weather, the Commodity Weather Group said in a note. The US Department of Agriculture said on Monday that only 32 percent of the US winter wheat crop was in good to excellent condition, the lowest rating for this point in the crop year since 2002.
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