Chicago | Reuters — Chicago soybean futures ticked higher on Thursday, continuing the previous day’s rebound as the market assessed chances for a resumption in Chinese demand following comments by U.S. President Donald Trump, analysts said.
Corn and wheat, which like soybeans hit multiweek lows on Wednesday, extended a bounce, with help from a weaker dollar and signs of fresh demand from wheat importers.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled 10-3/4 cents higher at $10.23-3/4 per bushel. On Wednesday, the contract fell below $10 for the first time in seven weeks before rebounding by the close.
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U.S. farmers have lost out on billions of dollars of sales to China, which is the biggest soy importer but has not yet bought beans from the autumn U.S. harvest amid a trade war with Washington.
Trump said in a social media post on Wednesday that soybeans would be a major topic of discussion when he meets Chinese counterpart Xi Jinping in four weeks.
“That gave soybeans support yesterday and we’re building on that today,” Karl Setzer, partner at Consus Ag, said. Rising soymeal prices have also provided support for soybeans.
The post spurred some buying, but ample supply and China’s continued absence from the U.S. market will likely cap any gains.
Ignoring the U.S., China has ramped up soybean purchases from South America, including a large volume of Argentine soybeans last week during a brief export tax waiver.
CBOT corn Cv1 settled 5-1/4 cents higher at $4.21-1/2 per bushel, and CBOT wheat Wv1 settled 5-1/2 cents higher at $5.14-3/4 per bushel.
Strong demand for wheat and signs of planting delays for winter wheat in the U.S. Plains have given a boost to wheat futures, with corn following wheat higher.
A U.S. government shutdown since Wednesday, amid political deadlock over budget funding, will likely delay the release of key USDA data.
— Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra
