SINGAPORE – Chicago soybeans rose to a three-month high on Wednesday, buoyed by optimism about Chinese demand, after Beijing’s comments eased some concerns about U.S. tariff policy. Wheat fell further from Monday’s eight-month high, while corn edged higher.
The most active soybean trade on the Chicago Board of Trade (CBOT) was up 0.3% at $11.58-3/4 per bushel at 1002 GMT. Earlier, oil prices rose to $11.65-1/2 a bushel, the highest since Nov. 18 and slightly above the three-month high from Monday. A U.S. Supreme Court ruling on Friday invalidated President Donald Trump’s global reciprocal tariffs and subsequent new 10% general tariffs introduced by the U.S. government, initially dampening hopes for further purchases by China.
Nevertheless, the Chinese government’s cautious response and the end of China’s long weekend helped maintain demand expectations. “China is returning from its Lunar New Year holiday and traders are looking for signs of additional U.S. soybean purchases to justify the recent rally,” said Donatas Jankauskas, an analyst at CM Navigator. Rumors of Chinese interest in U.S. soybean shipments from the Pacific Northwest contributed to the price increase, he added. China is closely monitoring U.S. policy and will decide “in due course” whether to adjust countermeasures in response to U.S. tariffs, a Commerce Department official said on Tuesday. The official added that the Chinese government is ready to hold discussions during the upcoming 6th economic and trade talks between the two countries. “The market expects China to buy US soybeans, which is supporting prices,” said an oilseed trader in Singapore. “But we have to wait and see what impact the U.S. Supreme Court order will have.” CBOT wheat fell 0.5% to $5.75-1/2 a bushel, further down from Monday’s high of $5.83-1/2. CBOT corn rose 0.3% to $4.39-3/4 a bushel. Rain forecast for the U.S. plains, dry conditions in flooded areas in western France and a thaw from winter frost in Eastern Europe are allaying weather concerns in the wheat market, analysts said. Price at 1002 GMT Last change rate Transfer rate CBOT Wheat 570.50 -2.75 -0.48 CBOT Corn 439.75 1.25 0.29 CBOT Soybean 1158.75 3.50 0.30 Paris Wheat 195.25 0.00 0.00 Paris Corn 192.75 0.75 0.39 Paris Rapeseed 488.50 -2.75 -0.56 WTI Crude Oil 65.50 -0.13 -0.20 EUR/USD 1.18 0.00 0.12 Most Active Contracts – Wheat, Corn, Soybeans UScents/bushel, Paris futures in EUR per metric ton.
