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Business Recorder
2 days ago
- Business
- Business Recorder
Chicago soybean higher on US-China trade hopes
PARIS/SINGAPORE: Chicago soybean prices ticked up on Wednesday to hold close to a two-week high, as investors cautiously welcomed news that US and Chinese officials agreed on a framework to preserve a truce in their countries' trade war. Corn and wheat also edged higher, with corn moving away from a six-month low and wheat from a near two-week low on Tuesday, though favourable US and global production prospects continued to curb the cereal markets. Price moves were limited, with traders awaiting more details on the outcome of the US-Chinese talks and watching for US inflation data later on Wednesday. Grain markets are also turning their attention to monthly US Department of Agriculture world crop forecasts on Thursday. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $10.59-3/4 per bushel by 1050 GMT, near Tuesday's peak that was the highest since May 28. 'The soybean market has stabilised. We're going to have to wait to see what happens next in the trade talks,' Argus Media analyst Maxence Devillers said. China is the world's biggest soybean importer, while the United States is the No. 2 exporter of the oilseed. Chinese retaliatory tariffs on US agricultural goods have curbed soybean trade, with Brazil dominating record Chinese soybean imports in May. After a bumper Brazilian harvest, a good start to the US growing season was also hanging over the soybean market. In cereals, CBOT wheat added 0.2% to $5.35-3/4 a bushel, after slipping to its lowest since May 29 on Tuesday, while corn gained 0.7% to $4.42 a bushel after reaching its weakest level since Dec. 5 in the previous session. Wheat prices came under pressure after the US Department of Agriculture raised its ratings for both spring and winter wheat crops, tempering concerns about rain damage in the run-up to harvesting. Supply prospects have also been bolstered by a satisfactory crop outlook in top wheat exporter Russia. 'There's not much to make prices rebound at the moment when you look at fundamentals, the crop outlook is decent,' Devillers said of wheat. In corn, brisk US exports were lending some support, but the feed grain market was also pressured by favourable crop conditions in both the United States and Brazil.
Business Recorder
29-04-2025
- Business
- Business Recorder
Corn and soy ease on crop progress, wheat steadies after slide
PARIS/SINGAPORE: Chicago corn and soybeans eased on Tuesday, with both markets facing pressure from advancing U.S. planting and favourable crop weather in South America. Chicago wheat steadied after a sharp fall on Monday fuelled by beneficial rain for U.S. crops. Grain traders were continuing to monitor developments in U.S. tariff policy. Investors took some comfort from news that U.S. President Donald Trump's administration said it planned to reduce the impact of auto tariffs, though a trade stand-off with top soybean importer China continued to cloud U.S. export prospects. The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.3% at $4.82 a bushel at 1120 GMT but it held above a 2/1/2 week low touched on Monday. CBOT soybeans gave up 0.2% to $10.60-1/2 a bushel. U.S. farmers had planted 24% of the corn crop as of Sunday, the U.S. Department of Agriculture (USDA) said, one percentage point behind analysts' average estimate but ahead of the five-year average of 22%. Wheat down 10-11 cents, corn down 6-7, soy down 5-6 In a weekly report released after Monday's market close, the USDA said soybean crop was 18% planted, ahead of both the five-year average of 12% and analysts' average estimate of 17%. In South America, regular showers have eased drought that had threatened to hurt Brazil's main corn crop, known as safrinha, while in Argentina a dry spell is set to help corn and soybean harvesting after heavy rain. 'The safrinha crop is looking very good and that is reassuring the market,' Maxence Devillers, analyst with Argus Media, said. While there was ongoing uncertainty over U.S. trade with China, expectations that Washington and Beijing will eventually lower tariffs through negotiations was helping underpin soybean prices, he added. wheat added 0.7% to $5.34-1/2 a bushel. The benchmark had dropped about 2.5% on Monday when it hit a three-week low, while individual delivery months sank to contract lows. In its crop progress report, the USDA rated 49% on the nation's winter wheat crop as being in good or excellent condition, up from 45% a week ago and above expectations of 47%. More rain is expected in the southern U.S. Plains in the week ahead, which could further ease drought and help crops in important growth stages. Traders were monitoring a cold spell in Russia, though a recovery in Russian export volumes this month and U.S.-led efforts to end Russia's war with Ukraine were tempering supply concerns, traders said.
