GRAINS-Chicago soya beans jump to a two-month high after Trump's comments
Chicago Board of Trade soybean contracts hit a 2-month high following remarks by U.S. president Donald Trump regarding China purchasing more U.S. soyabeans, traders said.
In a recent post on the Truth Social platform, Donald Trump said that China "has increased the Soybean count for this season to 20 million tons (They have committed 25 million Tons next season!
China purchased 12 million metric tonnes of U.S. soya beans by late January. This was in fulfillment of a U.S. pledge to purchase this volume by the end February following a trade truce that began late October.
China, the largest buyer of U.S. soya beans, has left the U.S. marketplace during the?prolonged tit-fortat trade dispute between the two nations. Market players are closely monitoring China for signs of "fresh demand".
The most active soybean contract settled at $10.92-3/4 per bushel, 26-1/2 cents more.
Soyoil futures rallied a day earlier, supported by the updated U.S. Government guidance on tax credit for biofuels, which is a major source for demand for soyoil.
Soybean oil, a by-product of soybeans, rose 1.17 cents to 55.66 cents a pound.
The U.S. Treasury Department released Tuesday updated guidance on tax credits for biofuels, which was welcomed by traders as it provided clarity to biofuel manufacturers.
CBOT Corn closed 1 cent higher, at $4.29-1/2 a bushel.
The U.S. Department of Agriculture's world crop forecasts for next Tuesday will provide traders with new direction.
The dollar increased on Wednesday, increasing the cost of U.S. Crops are more expensive abroad.
The wheat market has been under pressure due to concerns about crop winterkills in Ukraine and Russia after a prolonged period of "severe" cold in the Black Sea Region.
(source: Reuters)
