Soybeans Near 3-week High as China Resumes Buying U.S. Cargoes

(Agriculture.com) – Chicago soybeans rose for a fifth consecutive session on
Thursday to a near three-week high as top importer China returned to the U.S. market, seeking
cargoes amid easing trade tensions between the two countries.
Corn reached a 10-month peak on concerns about planting in parts of the U.S. Midwest, while
wheat was up for a third session as dry conditions in key producers around the world threatened
crops.
The Chicago Board Of Trade most-active soybean contract was up 0.6 percent at
$10.45-1/2 a bushel, by 0322 GMT, the highest since May 4.
Corn rose 0.1 percent to $4.09 a bushel. Earlier in the session, it touched its
highest since July at $4.09-1/4, and wheat climbed 0.1 percent to $5.31-1/2 a bushel.
“China is back to the U.S. market, which is good for U.S. soybean prices, but China’s
domestic demand is weak and Brazil has a record crop to sell,” said one India-based agricultural
commodities analyst.
“We think the market will be balanced as lower output in Argentina is likely to be offset
some weakness in demand from China.”
A Chinese importer on Tuesday purchased one cargo of U.S. soybeans for August shipment from
the U.S. Pacific Northwest. It marked the first sale of U.S. soybeans to China since the two
countries stepped back from a full-blown trade war.
China’s state grain stockpiler also returned this week to the U.S. soybean market for the
first time since early April, a sign that Beijing is preparing to resume purchases.
For corn, overly wet conditions have stalled planting in the northern Midwest, potentially
prompting a shift by farmers to grow soybeans or other crops that can be planted later in the
spring instead.
Meanwhile, worsening dryness in parts of the central Corn Belt increased concerns that
recently seeded crops could be facing a tough growing season ahead.
Dry weather in parts of Canada, Australia and Russia – all major wheat exporters – has added
to crop worries, although the global market is set for record inventory levels at the end of the
current season.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal and soyoil futures
contracts on Wednesday.