US soyabean futures rose nearly 4 percent on Thursday on hopes for easing tensions between the United States and China after President Donald Trump said trade talks with Beijing were "moving along nicely". Corn and wheat also firmed, following soyabeans and as the US dollar weakened, making purchases of US shipments less expensive for buyers holding other currencies.
Trump's comments in a post on Twitter ignited the rally, reversing earlier weakness stemming from sluggish corn and soyabean export sales and worries about swelling soyabean supplies as the US-China trade war has dragged down demand. Both countries have placed tariffs on some of each others' imports. Trump said that, after a "very good" talk with Chinese President Xi Jinping, trade discussions were "moving along nicely" and that the two leaders would meet to discuss trade at the G-20 summit in Argentina this month.
Chicago Board of Trade January soyabeans were up 32 cents, or 3.8 percent, at $8.83-3/4 a bushel by 11:54 a.m. CDT (1654 GMT) in the steepest rally in nearly four months. Buying accelerated as the contract broke through chart resistance at its 10-, 20-, 50- and 100-day moving averages. CBOT December corn rose 5-3/4 cents to $3.69 a bushel, while CBOT December wheat gained 7-1/2 cents to $5.08 a bushel.
Prices had been pressured earlier by sluggish corn and soyabean export sales in weekly US Department of Agriculture data. Net corn export sales last week totalled less than 400,000 tonnes for the third straight week while net soyabean sales totalled just 455,807 tonnes, compared with nearly 2 million tonnes in the same week last year, USDA data showed. Net wheat export sales, however, topped trade expectations at 582,545 tonnes, including 50,000 tonnes in sales to Egypt.
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