SINGAPORE: Chicago soybeans firmed on Wednesday, trading close to the two-week high touched in the previous session, as US and Chinese officials agreed on a framework to put their trade truce back on track.
Wheat edged higher for the first time in three sessions, although improved US crop ratings and higher output in top exporter Russia kept a lid on prices.
“The soybean market is (a) bit firm on hoping for good news on US-China, but (the) reaction for now is muted as we wait for the two sides to reach an agreement,” said an oilseed trader in Singapore.
China May soybean imports hit record high of 13.92 million metric tons
The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.1% to $10.59 per bushel as of 0242 GMT, trading close to Tuesday’s high, which was the strongest since May 28.
Wheat added 0.3% to $5.36 a bushel and corn gained 0.3% at $4.40-1/4 a bushel.
After two days of negotiations, the US and China agreed on a framework to ease retaliatory tariffs and help resolve China’s export restrictions on rare-earth minerals and magnets, US Commerce Secretary Howard Lutnick said as two days of intense negotiations concluded in London on Tuesday.
Earlier, China’s Vice Commerce Minister Li Chenggang said the two teams had agreed on implementing their Geneva consensus and would take the agreed framework back to their leaders.
China is the world’s biggest soybean importer, while the United States is the No. 2 exporter.
Wheat prices came under pressure over the past two sessions after the US Department of Agriculture raised its ratings for both spring and winter wheat crops, exceeding analysts’ expectations.
Russia’s grain harvest is projected to reach 135 million metric tons in 2025, up from 130 million tons last year, Deputy Prime Minister Dmitry Patrushev said, according to Interfax news agency.
Commodity funds were net buyers of CBOT soyoil futures contracts on Tuesday, net even in soybeans and soymeal and net sellers of wheat and corn futures, traders said.
