|23 September, 2019

Soybeans rise; fears of prolonged trade war cap gains

The most active soybean futures on the Chicago Board of Trade were up 0.1% at $8.84 a bushel

Image used for illustrative purpose. Male hands holding a sieve and throws up soybean grains.

Image used for illustrative purpose. Male hands holding a sieve and throws up soybean grains.

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SYDNEY - U.S. soybean futures edged higher on Monday, rebounding from losses of more than 1% in the previous session, though gains were checked by fears of a protracted trade war between Beijing and Washington.

FUNDAMENTALS
The most active soybean futures on the Chicago Board of Trade were up 0.1% at $8.84 a bushel by 0054 GMT, having
closed down 1.1% on Friday.

The most active corn futures were up 0.1% at $3.71-1/4 a bushel, having closed down 0.5% in the previous session.

The most active wheat futures were down 0.2% at$4.83-1/4 a bushel, having closed down 0.8% on Friday.

Market eyes any sign of progress in talks to end U.S.-China trade war.

U.S. and Chinese deputy negotiators held "productive" talks in Washington last week aimed at improving their trade
relationship, the U.S. Trade Representative's office said on Friday without offering further details.

Chinese officials unexpectedly cancelled a visit to farms in Montana and Nebraska as deputy trade negotiators wrapped up two days of talks in Washington.

U.S. President Donald Trump said the United States was looking for a complete trade deal with China and that agricultural purchases from the Asian nation would not go far enough, adding that a comprehensive agreement would take time.

MARKET NEWS
The U.S. dollar rose against a basket of currencies on Friday, for its first weekly increase in three, prompted by hopes of progress in U.S.-China trade talks and that the Federal Reserve would not lower rates aggressively.

Oil prices gained more than 1% to hit their highest levels in two sessions at the start of Monday's trade as Middle East
tensions remained elevated, supporting prices.

(Reporting by Colin Packham; Editing by Rashmi Aich)

© Reuters News 2019

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