SHANGHAI, Dec 31 (Reuters) - U.S. wheat and soybean futures fell in early trade on Tuesday on profit taking after hitting over one-year highs in the previous session, but were on track to chart annual gains.
Grain prices rose on Monday after the South China Morning Post reported that Chinese Vice Premier Liu He will visit Washington this week to sign an agreement for a Phase 1 trade deal, in which China agreed to import more U.S. farm goods.
The U.S. White House trade advisor also said on Monday that the agreement would be signed “within the next week or so”.
China, the world’s largest consumer of soybeans, and the United States struck a “Phase 1” trade deal earlier in December that includes a commitment by Beijing to increase purchases of American agricultural products.
* The most active wheat futures were up 10.1% so far for the year, in line for a third straight year of annual gains. Wheat prices were last down 0.4% at $5.54 a bushel at around 0200 GMT, after hitting their highest since August 2018 on Monday.
* The most active soybeans futures were also up 6.3% on-year, in line for its first annual gain in three years. Soybean prices, which rose to their highest since June 2018 in the previous session, were slightly down 0.1% at $9.51-3/4 a bushel.
* Meanwhile, the most active corn futures were also slightly up 3.2% on-year so far, but were down 0.3% at $3.87-1/4 a bushel on Monday.
* China approved two new genetically modified (GM) crops for import on Monday that could boost agricultural purchases from the United States, while renewing permits for 10 others, the Chinese agriculture ministry said.
* Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC,) on Monday received a lowest offer of $857.00 per tonne for 10,500 tonnes of sunflower oil at an international purchase tender for vegetable oils, traders said. It’s strategic reserves of wheat stand at five months.
* Export prices for Russian wheat rose for a seventh straight week last week due to higher benchmarks in Chicago and Paris, a stronger rouble and concerns about the 2020 Black Sea crop, analysts said.
* The dollar dipped to a near three-week low against the yen in thin year-end volume on Tuesday, as investors favoured riskier assets, led by renewed optimism about global growth.
* Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-U.S. trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following U.S. air strikes in Iraq and Syria.
* Wall Street’s major stock indexes slipped from record highs on Monday as investors booked profits from gains made this month after the United States and China reached a trade deal. (Reporting by Emily Chow; Editing by Rashmi Aich)