SINGAPORE- Chicago soybean futures rose for a third straight session on Monday to their highest level in almost one month as Washington and Beijing committed to a “phase one” trade deal, which is expected to boost US agriculture exports to China.
Corn climbed to a six-week high. Wheat rose for a second session, although gains were capped by ample world supplies.
The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.9 percent at $9.15-1/2 a bushel, near the session high of $9.17-1/4 a bushel, the highest since Nov. 18.
Corn firmed 1.4 percent to $3.86-1/4 a bushel, near the session high of $3.87 a bushel – the highest since Nov. 4, while wheat rose 0.7 percent to $5.36-1/4 a bushel.
“The trade deal is mainly supportive for soybeans and some for corn,” said one Singapore-based grains trader. “But we have to wait and see how much does China actually buy.”
China has agreed to buy $200 billion worth of additional US goods and services over the next two years as part of a phase one trade pact to be signed in early January, US Trade Representative Robert Lighthizer told reporters on Friday.
The United States has been pushing for China to commit to buy $50 billion in agricultural products in 2020. – Reuters