Soybeans edge higher, rebound from two-week low

PHOTO

SYDNEY - U.S. soybean futures edged higher on Wednesday, rebounding from a two-week low in the previous session, although gains were checked amid concerns that talks to ease a Sino-U.S. trade war will break without a meaningful deal.

FUNDAMENTALS

The most active soybean futures on the Chicago Board Of Trade rose 0.4 percent to $8.97 a bushel by 0121 GMT, having closed down 1.1 percent on Tuesday when prices hit a $8.93 a bushel - the lowest since Jan. 2.

The most active corn futures were up 0.5 percent at $3.73-1/4 a bushel, having closed down 1.9 percent in the previous session when prices hit a low of $3.71 a bushel - the lowest since Nov. 28, 2018.

The most active wheat futures were up 0.3 percent at$5.12-1/2 a bushel, having closed down 0.6 percent on Tuesday when prices hit a of low of $5.08 a bushel - the lowest since Jan 3.

U.S. Trade Representative Robert Lighthizer did not see any progress made on structural issues in trade talks between Washington and Beijing last week, Senator Chuck Grassley said.

Although China has booked about 5 million tonnes of U.S. soybean purchases since a 90-day trade war truce was agreed to on Dec. 1, there have been few details of further progress in the talks. The two sides are trying to reach a deal that avoids a scheduled March 2 escalation of U.S. tariffs on Chinese goods.

Dry weather in Brazil and Argentina added support to soybean prices.

The National Oilseed Processors Association on Tuesday said last month's soybean crushings topped the average trade estimate at 171.759 million bushels, the third highest monthly crush on record and the most ever for the final month of the year.

MARKET NEWS

The pound steadied early on Wednesday following a volatile overnight session after British lawmakers defeated Prime Minister Theresa May's Brexit divorce deal by a crushing margin.

U.S. oil prices inched lower on Wednesday after gains of more 3 percent in the previous session, pressured by concerns over the outlook for the global economy.

U.S. stocks rose on Tuesday as technology and internet stocks gained on Netflix Inc's plans to raise fees for U.S. subscribers and hopes of more stimulus for China's slowing economy fostered a risk-on mood among investors.

(Reporting by Colin Packham; editing by Richard Pullin)