US soyabean futures climbed to a two-week high on Friday on optimism over US-China trade talks planned for next week, coupled with declining estimates of the size of Brazil's developing crop, traders said. Corn and wheat followed the firm trend, with brightening export prospects for both grains lending support.
As of 12:47 p.m. CST (1847 GMT), Chicago Board of Trade March soyabeans were up 8-1/2 cents at $9.21-1/4 a bushel after reaching $9.22-1/2, the contract's highest since Dec. 19. CBOT March corn was up 3 cents at $3.82-3/4 a bushel and March wheat was up 4-1/2 cents at $5.18-1/4 a bushel.
Soyabeans, corn and wheat were each on track for a third consecutive higher close. Soyabeans were buoyed by news that the United States and top global soya buyer China will hold trade talks next week. Stock and commodity markets rallied after Beijing announced a new round of negotiations with Washington on Jan. 7-8, bolstering hopes of a resolution to a tariff war that has clouded the global economic outlook.
As the most valuable US agricultural export to China, soyabeans have been most sensitive to developments in the trade dispute. But traders also see scope for improved relations to trigger Chinese imports of US cereals like corn and wheat.