Soya advances following a promising exchange between the United States and China.
By ODA UK | Published at
On the wheat market, after yesterday's gains following strong U.S. weekly export sales (582KT), U.S. prices hovered near equilibrium as the European session closed, nearly breaking the bearish trend for the Dec.-18 expiry. European wheat finished the session at equilibrium after limited news about the market.
U.S. maize prices rose more than 1% as the European session ended with 200KT sold to Mexico. At the same time, several U.S. analysts revised their estimated yields slightly lower, which provided additional support. That said, U.S. maize yields are still forecast to break records this year. In the wake of Chicago, Euronext maize finished trading slightly higher. The Nov.-18 Euronext expiry closes on Monday.
In terms of oilseeds, Donald Trump announced via tweet that, following his telephone exchange yesterday with Xi Jinping, the two leaders should meet for talks during the G20 this month in Argentina. The announcement revived hopes of a trade agreement, which caused soya prices in Chicago to rise sharply yesterday and to make moderate gains today as the European market closed. At the same time, just as they did for maize, several U.S. analysts revised their estimates for U.S. yields slightly lower.
On the oils market, an uptick in Chinese demand for palm due to the trade war between China and the United States, combined with the return of a seasonal production decline over the coming months, provided support for palm prices.
Penalised by another drop in crude, rapeseed prices tumbled to end the day.