Reuters — U.S. soybean and corn futures rose on Thursday to one-month highs, spurred by a jump in crude oil following U.S. sanctions on Russia’s two biggest oil firms along with hopes for progress in U.S.-Chinese trade talks.
Wheat futures climbed more than one per cent supported by firming domestic cash markets and possible fund short-covering, analysts said.
Chicago Board of Trade November soybeans were up 10 cents at $10.44-3/4 per bushel, the contract’s highest since Sept. 19.
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CBOT December corn was up five cents at $4.28 a bushel while December wheat was up 9-1/4 cents at $5.13 a bushel.
Crude oil surged five per cent after the U.S. imposed sanctions on major Russian suppliers Rosneft and Lukoil over the Ukraine war. Soybeans and corn sometimes follow oil prices as the crops are widely processed for use in biofuel.
CBOT December soyoil futures were up 0.80 cent, at 50.87 cents per pound.
The soybean market also found support from prospects for a U.S.-China trade deal after their standoff this year halted massive U.S. soybean sales to China.
U.S. President Donald Trump maintained an upbeat tone about reaching agreements with his Chinese counterpart Xi Jinping when they are due to meet in South Korea next week, reiterating that the resumption of soybean purchases is a key area of discussion.
Some analysts noted brisk demand for soy from buyers other than China as well as domestic soy processors.
“The cash markets are really strong, not only in the interior (Midwest) but also for export. … We are the cheapest origin versus Brazil,” said Tom Fritz, a partner with EFG Group in Chicago.
Similarly, corn futures found support from cash-market strength. Cash basis bids for corn have firmed at a few locations this week, reflecting a lack of farmer selling and uncertainty about the size of the crop, given anecdotal reports from farmers of underwhelming yields, Fritz said.
“We’ve got a fairly decent (corn) export market and a great domestic market. And the chatter continues about ‘how small is the yield,’” Fritz said.
The U.S. Department of Agriculture has not released updated U.S. production estimates since mid-September due to the ongoing government shutdown.
— Reporting by Gus Trompiz, Ella Cao and Lewis Jackson
