Chicago | Reuters – Chicago soybean futures bounced on Wednesday on a slow start to the South American harvest.
Meanwhile, talks between U.S. and Chinese officials boosted export sentiment and shifted attention from a diplomatic dispute over Greenland, analysts said.
Wheat and corn also rebounded from drops a day earlier, with mixed weather conditions in major global production zones lending additional support.
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The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled up 11-1/2 cents at $10.64-1/2 a bushel.
Soybeans had fallen on Tuesday as investor worries about U.S. President Donald Trump’s tariff threats against Europe over his plan to take control of Greenland fueled risk-off sentiment across financial markets.
An earlier slide in the dollar index amid the market jitters over Greenland had helped boost the export competitiveness of U.S. crops, but the dollar regained ground as the market digested Trump’s speech at Davos.
Meanwhile, Karl Setzer, cofounder of Consus Ag Consulting, said “soybeans are finding support from a slow start to the Brazil harvest.”
Northern Brazilian showers are interrupting fieldwork at times, but serious slowdowns are not expected in the next weeks, according to forecaster Commodity Weather Group.
Comments by U.S. Treasury Secretary Scott Bessent revived hopes for ongoing demand for U.S. soybeans from China following a bilateral trade truce in late October.
Bessent said he had met with Chinese Vice Premier He Lifeng, in what he called “positive” talks, adding that his Chinese counterpart had confirmed the completion of an initial U.S. soybean purchase commitment, which Washington has put at 12 million tons.
While ample global supply continued to cap grain prices, dry weather affecting corn and soybean crops in part of Argentina and cold weather in wheat production belts in the Black Sea region were also underpinning prices.
Setzer said slightly wetter weather in the wheat-producing U.S. Plains added some pressure, however.
CBOT wheat Wv1 was down 2-1/2 cents at $5.07-3/4 a bushel, while corn Cv1 fell 2 cents to $4.21-3/4 a bushel.
Weekly U.S. export inspection volumes reported on Tuesday, which were above market expectations for corn and near the high end of estimates for wheat and soybeans, also boosted demand sentiment. USDA/EST
Additional reporting by Gus Trompiz in Paris, Daphne Zhang in Beijing and Peter Hobson in Canberra.
