Soybean futures posted modest gains on Wednesday, with U.S.-China trade hopes offering support.
With trade talks between the two sides scheduled to resume tomorrow in Washington, a Financial Times report from Beijing said China is expected to offer to buy more U.S. ag products, boosting soybean purchases to 30 million tonnes. If accurate, that would be in line with China’s purchases prior to the start of the trade war. Forecasts for a snowstorm in the northern Midwest also underpinned the market. Meanwhile, traders are generally expecting lower 2019 U.S. soybean production and ending stocks estimates in Thursday’s USDA supply-demand update. November soybeans gained 3 ¼ cents to $9.23 ¾ and January added 2 ¾ cents to $9.38.
Corn was slightly lower on the day, despite generally supportive ethanol data and the fact about 9% of the American corn crop is still vulnerable to frost damage. As with soybeans, traders expect tomorrow’s USDA report to show lower 2019-20 production and ending stocks compared to a month earlier. December corn slipped 1 ½ cents to $3.94 ¼ and March lost a penny to $4.05 ½.
Wheat was mixed, with traders expecting little change in 2019-20 U.S. wheat ending stocks in tomorrow’s supply-demand update. Large world supplies and a highly competitive international market were bearish factors for wheat today. December Chicago wheat was steady at $5.00 ¼, March Kansas City added 3 cents to $4.13 ¼ and March Minneapolis was down 1 ¾ cents at $5.41 ¾.
Live cattle and lean hogs both closed higher today.
Source: DePutter Publishing Ltd.
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