Chicago soyabean futures climbed higher on Monday amid news reports that Beijing and Washington are close to settling a lingering trade dispute, a breakthrough that could boost China's demand for US soya and other agricultural products. Corn also rose, pulling away from a three-month low struck in the previous session. Wheat prices eased back in midday trading, but held above an 11-month low touched on Friday.
Grain markets have been pressured by ample global supplies, underscored by a slowdown in Chinese demand for US supplies during the standoff on tariffs with Washington. But rising expectations of a trade deal have raised the prospect of a revival of purchases by China of US agricultural goods.
Meanwhile, traders said, the market saw some technical buying on Monday, as flooding and ice buildup on key rivers in the US Midwest has stalled the movement of barges that supply export terminals at the Gulf of Mexico with grain and soya.
Weather worries also gave corn a tiny boost in the markets on Monday, traders said.
The most active soyabean futures on the Chicago Board of Trade were up 0.77 percent at $9.18-1/2 a bushel by 11:42 a.m. CST (1742 GMT) on Monday, holding above the $9 threshold seen in hesitant trading on Friday.
CBOT corn rose 0.67 percent to $3.75-1/2 a bushel to move off of Friday's three-month low of $3.66.
Wheat inched down 0.27 percent to $4.56 a bushel, but held above Friday's low of $4.47-1/4, its weakest level since last April 4.
Wheat lost 7 percent last week - its sharpest weekly fall in six months - as doubts that lower prices would boost export demand encouraged more selling by investment funds.
Comments
Comments are closed.