soybean futures brokers

soybean futures brokers

November 2nd, 2018

U.S. soybean futures scaled to two-week peaks on Friday on signs of easing trade tensions between Washington and Beijing, but slipped from the highs after a White House official said he was less optimistic that a trade deal could be reached.

Corn futures also climbed, lifted by expectations for a cut to the U.S. Agriculture Department’s U.S. crop forecast in a monthly report next week, while wheat edged up in tandem with firming corn.

Soybeans posted their steepest gain in four months on Thursday after U.S. President Donald Trump and China’s Xi Jinping spoke on the phone about trade and agreed to meet this month at the G-20 meeting in Argentina. The rally put the soy market on track for the strongest weekly advance in 16 months.

“Both presidents are putting out some optimistic vibes in terms of the potential for a trade deal,” said Terry Linn, analyst with Linn & Associates. “Both sides are talking and the meeting is set up in just under three weeks. Maybe something will happen.”

Soybean price moves were volatile amid conflicting reports that Trump had asked his cabinet to draw up a China trade plan. The market pared gains after White House economic adviser Larry Kudlow later told CNBC that Trump had not asked for a plan and said he was less optimistic than he previously was about reaching a deal with China.

Chicago Board of Trade January soybeans were up 3-1/2 cents at $8.85-1/2 a bushel at 12:47 p.m. CDT (1747 GMT) after peaking at a two-week high of $9.00-3/4.

CBOT December corn added 4-1/2 cents to $3.71-1/4 a bushel, while CBOT December wheat was up 1-3/4 at $5.09-3/4 a bushel.

Positioning ahead of next week’s monthly U.S. Department of Agriculture supply-and-demand report buoyed both corn and soybeans amid expectations that the government would lower its yield estimates after some areas of the Midwest were hit by poor harvest weather.

Analytics firm Informa Economics cut its outlook for both crops on Friday, trimming its corn yield forecast by 2.4 bushels per acre (bpa) to 179.7 bpa, according to trade sources that viewed the report. It also trimmed its soybean yield estimate to 52.6 bpa, down 0.4 bpa.

The USDA is due to release its monthly report next Thursday.

- Successful Farming.