Soybeans Firm On China Sales Hopes, Wheat Falls
Chicago soybeans rose on Tuesday on hopes China will continue buying US supplies even though there are expectations that purchases will be halted because of a dispute with the United States over Hong Kong.
Wheat fell, while corn was little changed.
Chicago Board of Trade most-active soybeans rose 0.5% to $8.44-3/4 a bushel at 10:30 GMT.
Corn rose just 0.08% to $3.23-1/2 a bushel. Wheat fell 0.4% to $5.12-3/4 a bushel.
Dispute With The United States
China has told state-owned firms to halt purchases of US soybeans in the dispute with the United States over China’s actions in Hong Kong. But state-owned Chinese firms bought at least three cargoes of US soybeans on Monday.
“Soybeans are supported by hopes that China will still buy US soybeans despite saying it would not because of the Hong Kong dispute,” said Matt Ammermann, commodity risk manager with INTL FCStone.
“Markets fell after China said it would stop US soy purchases but then China reportedly bought three shipments of soybeans which raise hopes that Chinese buying from the US will continue.”
Commerzbank said, "It cannot yet be ruled out that the actions by the Chinese are not much more than sabre-rattling."
The market is also shifting its focus on to the start of the US wheat harvest.
The US Department of Agriculture (USDA) on Monday said 3% of the US winter wheat crop was cut, below estimates of 5% but ahead of the 2% five-year average.
“Wheat is weakened by favourable weather in the US as the harvest starts and recent rain in the Black Sea and Europe which has helped stabilise crops in these export regions,” Ammermann said.
“Corn is little changed as the market assesses the US crop conditions and the weather outlook for the US harvest.”
The USDA said the US corn crop was 93% planted, below forecasts of 94%.
The USDA said 75% of US soybeans were planted, less than estimates for 79%.