Soybeans climb to 16-month high on U.S.-China trade optimism
Chicago soybean futures gained more ground on Monday with prices hitting a 16-month peak as progress in U.S.-China trade talks underpinned the market.
Corn hit a 2-month high while wheat rose to its highest since mid-July.
* The most-active soybean contract on the Chicago Board Of Trade (CBOT) jumped to its highest since June 2018 at $9.46 a bushel.
* Corn rose to its highest since Aug. 12 at $4.02-1/2 a bushel and wheat touched $5.14-3/4 a bushel, the highest since July 19.
* U.S. President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.
* The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months to end a tariff tit-for-tat that has whipsawed financial markets and slowed global growth.
* Soybeans, the largest U.S. crop export to China, have been supported by purchases of U.S. soybeans by China in the run-up to the latest round of trade talks, including a 398,000-tonne sale reported by the USDA on Thursday.
* The market continues to monitor a winter storm bringing blizzard conditions to parts of the Dakotas. Freezing temperatures were expected for Minnesota and Iowa this weekend.
* Large speculators trimmed their net short position in CBOT corn futures in the week to Oct. 8, regulatory data released on Friday showed.
* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.
* Asian share markets pushed higher on Monday as signs of progress in the Sino-U.S. trade standoff whetted risk appetites, while pressuring safe-haven bonds and the yen.
DATA/EVENTS AHEAD (GMT) 0630 India WPI Inflation YY Sept N/A China Exports YY Sept N/A China Imports YY Sept N/A China Trade Balance USD Sept Grains prices at 0058 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 511.00 3.00 +0.59% +3.65% 485.28 73 CBOT corn 400.50 2.75 +0.69% +5.33% 375.53 66 CBOT soy 944.75 8.75 +0.93% +2.30% 896.35 83 CBOT rice 12.04 -$0.02 -0.17% +0.00% $12.02 62 WTI crude 54.60 -$0.10 -0.18% +1.96% $55.72 Currencies Euro/dlr $1.103 -$0.001 -0.12% +0.21% USD/AUD 0.6782 0.000 -0.07% +0.31%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
Source: Reuters (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)