Chicago soyabean futures rose on Friday as renewed US-China tensions were offset by stronger soyameal prices. Chicago wheat futures sank after three days of gains as a firmer US dollar disadvantaged the crop in the export market, while corn slumped on expectations of a large US crop.
The most active soyabean contract on the Chicago Board of Trade was up 1-1/2 cents at $8.36-1/2 a bushel at 11:01 a.m. (1701 GMT). July soyabean meal futures gained $2.90 to $285.4 per short ton.
"We're seeing some unwinding of bean oil-meal spreads that were put on earlier this week," said Terry Reilly, senior agriculture futures analyst with Futures International. "Soyabeans were on the defensive earlier on possible US-China tensions, but I think people backed off on that."
Chicago wheat futures dipped for the first time in four sessions with the most active contract down 8-1/2 cents at $5.07-1/2 a bushel. The most active CBOT corn contract dropped 3/4 cent to $3.17 a bushel.
China announced new national security legislation on Hong Kong after last year's pro-democracy unrest, drawing a warning from US President Donald Trump that Washington would react "very strongly" against attempts to further restrict the former British colony.
Thursday's US Agriculture Department weekly export sales report showed bigger-than-expected soyabean sales at 1.669 million tonnes, including 1.199 million tonnes to China in the week ended May 14.
Wheat drew support midweek from concerns that dryness in Russia will lower global production, but reversed Friday as stronger US currency weighed on export prospects.
"The US dollar is starting to firm up again. We're seeing wheat back-pedal from that," said Karl Setzer, commodity risk analyst with Agrivisor. Corn dipped as ahead-of-pace US planting progress continues to portend a massive fall harvest, and traders positioned ahead of the US Memorial Day holiday.
Comments
Comments are closed.