SINGAPORE – Soybeans climbed to a two-month high on Monday and corn inched higher, supported by expectations of trade talks between Washington and Beijing, although gains were limited as market participants remained cautious.
Wheat prices eased, but losses were limited by concerns over dryness curbing US yields.
“There is some hope that US and China might start trade negotiations, but the price move is limited for now,” said one grains trader in Singapore.
“There is not going to be much excitement unless we some action on trade talks.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3 percent at $10.50-1/2 a bushel. Earlier in the session, the contract rose to $10.55 a bushel, its highest level since February 24.
Corn gained 0.6 percent at $4.85 a bushel and wheat was down 0.3 percent at $5.60-3/4 a bushel, after rallying in the previous two sessions.
Dealers await news about the possible trade talks in hopes that they could restart US soybean exports to China.
Xie Feng, China’s ambassador to the United States, has urged Washington to seek common ground with Beijing and pursue peaceful coexistence while warning that China stood ready to retaliate in the escalating trade war.
While Japan, Taiwan and others are already in talks or preparing to negotiate over US President Donald Trump’s so-called “Liberation Day” tariffs, there is currently no high-level dialogue planned with China.
