SYDNEY- US soybean futures rose for a seventh consecutive session on Tuesday as China tempered fears that the coronavirus outbreak will see Beijing failing to fulfill its commitment to buy North American supplies.
Corn fell for a second straight session, while wheat fell more than 0.5 percent to hit a eight-day low.
The most active soybean futures on the Chicago Board Of Trade were up 0.4 percent at $8.87-3/4 a bushel, after having risen 0.3 percent on Monday, when prices hit its highest level since Jan. 31 of $8.89-3/4 a bushel.
Analysts said China’s commitment to buying North American supplies continued to drive gains, though the outbreak of coronavirus looms over the market.
“Stories about supply chains being disrupted by the flu epidemic is growing, but that may or may not be evidence the economic consequences are worsening,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
Chinese President Xi Jinping told US President Donald Trump that China would meet its Phase 1 trade deal purchasing targets despite delays linked to the coronavirus, White House adviser Larry Kudlow told Bloomberg Television on Friday.
The market, however, is waiting for proof of fresh Chinese demand before pushing prices any higher
The Phase 1 deal states that China in 2020 will increase US agricultural purchases by no less than $12.5 billion above the 2017 baseline and the 2021 amount will be at least $19.5 billion above the baseline. – Reuters
