Soybeans Firm On Trade Optimism, Wheat Steadies After Slide
Chicago soybean futures edged higher on Wednesday to touch a one-week high, underpinned by expectations of progress in trade talks between Washington and Beijing.
U.S. wheat futures rose, steadying after losses a day earlier fuelled by improving crop prospects, while corn was also firm, as traders assessed rain forecasts after recent flooding that threatened to disrupt spring planting.
An easing in the dollar after Tuesday's 3-1/2 week high against a basket of currencies, and broad gains in commodity and equity markets, also supported grains.
The United States and China expect to make more headway in trade talks this week, White House economic adviser Larry Kudlow said on Tuesday, though the top U.S. business lobbying group said differences over an enforcement mechanism and the removal of U.S. tariffs were still obstacles to a deal.
Chinese Vice Premier Liu He is in Washington just days after wrapping up trade talks last week in Beijing.
Private U.S. exporters have this week reported the sale of 828,000 tonnes of soybeans to China, according to the U.S. Department of Agriculture (USDA), adding to a series of purchases made during a negotiating truce that started in December.
Trade news has helped soybeans shake off last Friday's U.S. Department of Agriculture (USDA) crop data that showed hefty supplies of crops, triggering a slide in grain markets led by corn.
"Continued short-covering is possible as the (U.S.-China) discussions continue," brokerage Allendale said of soybeans.