Soybeans drop, corn dips

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    SINGAPORE- Chicago soybean futures ticked lower on Tuesday although losses were limited by expectations that a Washington-Beijing Phase 1 trade deal will boost demand for US supplies.

    Corn eased after gaining for the last two sessions, while wheat fell for a second day.

    “Strong buying by China and US-China trade deal are likely to support soybeans,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

    The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.2 percent to $9.40 a bushel, heading for a second consecutive session of drop. Corn gave up 0.3 percent to $3.88-1/2 a bushel and wheat slid 0.2 percent to $5.61-1/4 a bushel.

    China’s soybean imports in December surged 67 percent from a year earlier to a 19-month-high, customs data showed, as a flurry of US and Brazilian cargoes booked earlier cleared customs.

    China, the world’s top market for soybeans, brought in 9.54 million tons of the oilseed, up from 5.72 million tons a year earlier, according to data from the General Administration of Customs.

    US Treasury Secretary Steven Mnuchin on Sunday reiterated Washington’s position that China has committed to increase purchases of US agricultural products to $40 billion-$50 billion annually. But a lack of detail on the accord has made some traders cautious. – Reuters