SINGAPORE/PARIS (Reuters) - Chicago soybeans rose for a second consecutive session on Wednesday after President Donald Trump said China was back in the market buying U.S. beans.
Wheat edged higher, snapping two sessions of falls, but the market remained under pressure as the U.S. Department of Agriculture (USDA) raised its forecasts of U.S. and global wheat ending stocks more than most analysts had expected.
The most-active soybean contract on the Chicago Board Of Trade gained 0.7 percent to $9.21-3/4 a bushel by 1213 GMT, after touching its highest since Dec. 3 at $9.23 a bushel.
Wheat was up 0.8 percent at $5.25-1/4 a bushel, having closed down 0.8 percent on Tuesday, and corn added 0.4 percent at $3.86-1/4 a bushel, having gained 0.2 percent in the previous session.
Trump told Reuters on Tuesday that China was buying a “tremendous amount” of U.S. soybeans and that trade talks with Beijing were already under way by telephone, with more meetings likely among U.S. and Chinese officials.
“U.S. president saying China is buying U.S. soybeans is certainly supportive for the market,” said one Singapore-based oilseed trader. “But the market is not going to rally unless we see actual deals being signed.”
Trump and China’s President Xi Jinping agreed at a Dec. 1 meeting in Argentina to a truce that delayed a planned Jan. 1 U.S. increase of tariffs to 25 percent from 10 percent on $200 billion worth of Chinese goods.
The USDA, in its monthly supply-demand report, raised its forecast of world 2018/19 soybean ending stocks to 115.33 million tonnes, topping a range of estimates.
The agency raised its forecast of U.S. 2018-19 wheat ending stocks to 974 million bushels from 949 million bushels in November, above the average trade expectation for 956 million bushels.
The larger stockpile expected at the end of the marketing year reflected a cut in the government’s forecast of U.S. wheat exports.
“Even if (wheat) exports pick up in the remainder of the season, the overall figure will remain unsatisfactory,” Commerzbank said in a note.Commodity funds were net buyers of CBOT soybean, corn, soyoil and soymeal futures contracts on Tuesday and net sellers of wheat, traders said. <COMFUND/CBT>
Prices at 1213 GMT
Last Change Pct End Ytd
Move 2017 Pct
CBOT wheat Dec 525.25 4.25 0.82 427.00 23.01
CBOT corn Dec 386.25 1.50 0.39 350.75 10.12
CBOT soy Dec 921.75 6.75 0.74 951.75 -3.15
Paris wheat Mar 205.75 1.25 0.61 170.00 21.03
Paris maize Nov 175.25 0.50 0.29 163.50 7.19
Paris rape Aug 369.00 0.00 0.00 347.75 6.11
WTI crude oil 52.57 0.92 1.78 60.42 -12.9
Euro/dlr 1.13 0.00 0.12
Most active contracts - Wheat, corn and soy US cents/bushel,
Paris futures in euros per tonne
Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Edmund Blair