US soyabean futures edged higher on Tuesday on hopes that a US-China trade war truce over the weekend would result in fresh Chinese demand for US soyabeans, although no deals have been struck yet. Corn also firmed slightly, following soyabeans, while wheat eased on dull demand.
At Saturday's Group of 20 meeting in Argentina, US President Donald Trump agreed to postpone new tariffs during the 90-day truce, while his Chinese counterpart pledged to purchase more agricultural products from US farmers immediately.
However, China will need to lift tariffs it imposed on US farm products, including soyabeans, before it can realistically buy substantial volumes of US goods. Chicago Board of Trade January soyabeans were up 3-3/4 cents at $9.09-1/2 a bushel at 11:46 a.m. CST (1746 GMT), well off of a four-month high notched on Monday in response to the truce.
Trump on Tuesday held out the possibility of extending the truce but warned he would revert to tariffs if the two sides could not resolve their differences. Soyabean futures also remain anchored by ample US supplies and a massive Brazilian harvest due in early 2019 that would make it more difficult for US shipments to compete in the export market. CBOT March corn futures were up 1-3/4 cents at $3.73 a bushel, while CBOT March wheat was flat at $5.21-1/4 a bushel.
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