CBOT soybean futures edge higher on fresh Chinese purchase of US agricultural products

CHICAGO (Xinhua) – Chicago Board of Trade (CBOT) agricultural futures settled higher for the trading week which ended on September 27, with soybeans rising on fresh Chinese purchase of United States (US) agricultural products.

The most active corn contract for December delivery was up 0.75 cent, or 0.2 per cent week on week, to close at 3.715 dollars per bushel last Friday. November soybeans were up 0.25 cent, or 0.03 per cent, to settle at 8.83 dollars per bushel. December wheat was up three cents, or 0.62 percent, to close at 4.8725 dollars per bushel. CBOT agricultural futures closed mixed last Monday, with soybean futures rising over one per cent on optimism over US-China trade talks.

China and the US held vice ministerial-level trade talks in Washington between September 19 and 20, and conducted constructive discussions on economic and trade issues of mutual concern.

The two sides also carefully discussed the specific arrangement for the 13th round of China-US high-level economic and trade consultations scheduled for October in Washington. The two sides agreed to continue to maintain communication on related issues.

Rising concerns that rains in the US Midwest could lower crop quality just ahead of harvest also supported the crop market, traders said. Corn futures edged higher on technical buying and worries about wet conditions in portions of the US Midwest.

CBOT agricultural futures closed mixed on Tuesday, with wheat futures falling for four consecutive sessions on technical selling and ample global supplies.

The US Department of Agriculture (USDA) late Monday reported the US spring wheat crop was 87 per cent harvested, up from 76 per cent a week earlier but behind the five-year average of 97 per cent.

The USDA said the US winter wheat crop was 22 per cent seeded, up from eight per cent the previous week but behind the five-year average of 24 per cent.

Corn futures were slightly higher on technical buying but better-than-expected crop conditions kept the gains in check.

The USDA rated 57 per cent of the corn crop in good to excellent condition, up from 55 per cent last week and above an average of trade expectations.

Soybeans rose on renewed optimism about Chinese demand for US supplies of the oilseed.

The USDA rated 54 per cent of the US soybean crop as good to excellent, unchanged from the week before and in line with expectations. CBOT agricultural futures closed lower last Wednesday, with soybean futures falling on investors’ technical selling.

Soybean futures faced pressure as investors turned to technical selling on concerns about development of US-China trade talks.

But private exporters last Wednesday reported to the USDA export sales of 581,000 metric tonnes of soybeans for delivery to China during the 2019/2020 marketing year.

Corn futures went down slightly as the market awaited a clearer picture of harvest yields.

Investors instead turned their attention toward grain stocks data set to be published today by the USDA. Wheat futures retreated on investors’ technical selling and strong competition for global export business.