Chicago soy, corn and wheat higher on China-US trade optimism
BEIJING/PARIS: Chicago soybean and grain futures rose on Wednesday as news of a planned meeting between senior U.S. and Chinese officials boosted hopes for easing trade tensions between the world's two largest economies. A weaker dollar and steady crude oil prices also helped underpin the grain markets, while investors awaited further direction from a U.S. Federal Reserve policy decision later on Wednesday. The most-active soybean contract on the Chicago Board of Trade (CBOT) gained 1.1% to $10.53 a bushel, recovering from a 2-1/2 week low on Tuesday. The soybean market has been particularly sensitive to the Sino-U.S. tariff battle, given China dominates global soybean imports, including a large portion of shipments from the United States, the world's second-largest exporter of the oilseed. "Markets are higher across the board this morning, led by soybeans, following news that Chinese and U.S. officials will meet this week," CM Navigator analyst Donatas Jankauskas said in a note. The planned meeting, which comes after the recent absence of clear steps towards de-escalating the tariff stand-off, also supported corn and wheat prices that have been pressured by improving crop weather in the United States. CBOT corn rose 1.5% to $4.62-1/2 a bushel to move further away from a one-month low touched on Tuesday. CBOT wheat added 1.3% to $5.43 a bushel. The wheat market has also drawn support from dryness concerns in Henan, a major wheat-producing province in China. Reduced output there could spur more Chinese demand for wheat imports. Prices at 1117 GMT Last Change Pct Move CBOT wheat 543.00 7.00 1.31 CBOT corn 462.50 7.00 1.54 CBOT soy 1053.00 11.75 1.13 Paris wheat 206.25 0.75 0.36 Paris maize 196.75 1.50 0.77 Paris rapeseed 476.00 2.00 0.42 WTI crude oil 59.61 0.52 0.88 Euro/dlr 1.14 0.00 0.00 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton
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