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Soybeans Market On Track For November Gains

Published on Nov 30 2018 2:25 PM in Supply Chain tagged: China / Soybeans / Trade / Soy

Soybeans Market On Track For November Gains

Chicago soybeans ticked higher on Friday, keeping the oilseed market on course for a monthly gain, as investors waited on U.S.-China trade talks to see whether the two sides can defuse a trade dispute that has disrupted global soybean flows.

Corn and wheat also edged higher in restrained trading before a meeting of G20 countries in Argentina that starts on Friday and is due to include head-to-head discussions between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Saturday.

As the most valuable U.S. agricultural export to China, soybeans have taken the brunt of reciprocal tariffs imposed by Washington and Beijing in their trade stand-off. Trump has sent mixed signals about the prospects for a trade deal with China, saying an agreement was close but he was not sure he wants one.

High-Stakes Meeting

"Grain markets have all hands on deck searching for the latest clues regarding tomorrow's high-stakes meeting between the U.S. and Chinese presidents," brokerage Allendale said in a note.

"End-of-month positioning will also play a role as traders prep for the final trading month of the year."

U.S. soybean exports in the new season are running at their lowest level in years after shipments to China dried up, though there has been a surge in volumes to other destinations, including unusual flows to soybean exporter
Argentina.

Wheat prices have been underpinned by expectations that U.S. wheat exports will pick up next year as the Black Sea region runs out of surplus supplies. However, moderate U.S. shipments so far this season and increased estimates for Russian exports have tempered those hopes.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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