Chicago | Reuters — Chicago grains and soybeans firmed on Friday as expectations improved for U.S.-China trade relations after leaders of the two countries spoke and agreed to further discussions.
Additional support came from U.S. weather and escalated fighting between Russia and Ukraine.
The most-active July soybean contract on the Chicago Board of Trade settled up 5-1/2 cents at $10.57-1/4 a bushel. July wheat ended up 9-1/4 cents at $5.54-3/4 a bushel, having hit its highest point since May 21, and July corn added three cents to finish at $4.42-1/2 a bushel.
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U.S. President Donald Trump and Chinese leader Xi Jinping confronted weeks of brewing trade tensions in a rare leader-to-leader call on Thursday. Trump said on social media the talks, which focused primarily on trade, led to “a very positive conclusion,” announcing further lower-level bilateral talks.
China is by far the world’s biggest soybean buyer.
Weather forecasts also added support, said Karl Setzer, partner at Consus Ag Consulting.
“We are finally seeing some risk premium added in,” said Setzer.
Rains helped improve soil moisture in parts of the U.S. Southern Plains and the Midwest, according to weather forecaster Vaisala. But dryness lingers in north central Kansas, southeastern Nebraska, Iowa, southern Minnesota, northern Illinois, northern Indiana and western Ohio, according to the forecaster. That dryness could stress germination and early growth of corn and soybeans.
Meanwhile in wheat, temperatures have been below normal in the Plains this week, slowing winter wheat maturation, Vaisala said.
And, in the war between leading wheat suppliers Russia and Ukraine, fighting intensified, with Russia launching an intense missile and drone barrage at the Ukrainian capital Kyiv in the early hours of Friday.
