US soyabean futures climbed to a one-week high on Thursday as plans for Beijing and Washington to hold fresh trade talks raised hopes that US soya sales to China will increase after being stalled by a tariff dispute. The rally in soyabeans, along with an easing in the US dollar, helped wheat and corn futures to rise too, traders said.
Prices jumped after China's Ministry of Commerce said a Chinese delegation will travel to the United States for trade talks this month. The gains were a turnaround from Monday, when soya futures
dropped to a three-week low on fears that US inventories would pile up because of a record-large harvest and the trade row. China is the world's top soya importer and bought $12 billion worth of the oilseed from the United States last year, making soyabeans America's top farm export to China. However, the trade stand-off has prompted Beijing to impose extra tariffs on US soyabeans and shift its purchases to Brazil.
The Chicago Board of Trade's most active soyabean contract was up 28 cents at $8.97 a bushel by 12:50 CDT (1750 GMT), reversing Wednesday's 1.2 percent loss. The nearby contract traded to its highest price since Aug. 9. Dwindling supplies in Brazil and the arrival of US cargoes at China's Dalian port have suggested China will need to resume soya imports from the United States to cover its needs, according to some traders.
A second vessel carrying US soyabeans has entered Dalian, Thomson Reuters data showed, following the unloading of US beans from another ship this week. In other export news, the US Department of Agriculture said private exporters struck deals to sell 154,404 tons of US soya to Mexico and 200,000 tons of US hard red winter wheat to Iraq. CBOT wheat rose 11-3/4 cents to $5.63-1/3 a bushel and corn advanced 5 cents to $3.81 a bushel.
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