US soyabean futures surged more than 2 percent on Tuesday to one-month highs on hopes that the United States and China would restart stalled trade talks and avert a damaging trade war that has already slowed US soya exports. Corn and wheat climbed along with soyabeans, drawing additional support from concerns about weather-reduced harvests in key production areas around the world.
Soyabeans led grain markets higher after a news media report that US and Chinese government representatives were trying to revive trade negotiations ahead of another round of US tariffs on Chinese goods. The report, which has not been verified by Reuters, also buoyed equities markets. The White House, the US Department of the Treasury and the Office of the US Trade Representative declined to comment on the report.
China has imposed retaliatory tariffs on US soyabeans, dairy, meat, produce and liquor after Washington put duties on Chinese goods. Chicago Board of Trade November soyabean futures, the most actively traded contract, jumped 20-1/4 cents, or 2.3 percent, to $9.11-1/4 a bushel by 11:54 a.m. CDT (1654 GMT), the highest since June 25. CBOT September corn notched a fresh 1-1/2-month high, gaining 2-3/4 cents, or 0.8 percent, to $3.70 a bushel. CBOT September wheat was up 3/4 cent at $5.57-1/4 a bushel after earlier touching a two-month high.
Concerns about weather-reduced crops also underpinned grain markets. Forecasters have cut wheat harvest expectations for Russia, the European Union and Australia due to adverse weather, while prolonged dryness in parts of the US Midwest have likely dragged down yield potential for corn and soyabean crops.