GRAINS-Chicago soybean futures rise after positive US-China trade talks; wheat and corn fall
BEIJING, May 12 (Reuters) - Chicago soybean futures edged higher on Monday, supported by positive developments in U.S.-China trade talks over the weekend in Switzerland.
Wheat edged lower on favourable weather and weak exports. Corn also declined.
FUNDAMENTALS
* The most-active CBOT soybean contract Sv1 rose 0.31% to $10.55 a bushel as of 0109 GMT, extending gains for a third consecutive session.
* Wheat Wv1 slipped 1.01% to $5.17 a bushel, hovering near a 9-month low. Corn Cv1 dipped 0.22% to $4.49 per bushel.
* U.S.-China trade talks concluded positively on Sunday. U.S. officials touted a "deal" to reduce the U.S. trade deficit, while Chinese officials said the sides had reached "important consensus" and agreed to launch another new economic dialogue forum.
* The trade standoff between Beijing and Washington has curbed soybean purchases by China, prompting the world's largest soybean importer to shift more of its buying to Brazil, the top global producer.
* Market participants are awaiting the United States Department of Agriculture's report on Monday, which will provide the first 2025–26 supply and demand estimates.
* U.S. soybean supplies for 2025-26 are expected remain similar to 2024-25, though global stocks are anticipated to rise.
* U.S. corn ending stocks are expected to reach nearly 2 billion bushels, up 40% on the year due to a massive acreage.
* Global wheat stocks for 2025-26 are forecast to remain largely unchanged from 2024-25.
* Ideal planting and growing conditions in the U.S. corn and soy belts are keeping price gains in check.
* The approaching Brazilian corn harvest is expected to shift global demand away from U.S. corn in the coming weeks.
* Improved weather in the U.S. Plains has boosted winter wheat crop conditions. Similarly, precipitation forecasts for Ukraine and Russia eased concerns about crop stress, pressuring wheat prices.
MARKET NEWS
* Wall Street stock futures jumped and the dollar firmed against safe haven peers on Monday as signs of progress in U.S.-China trade talks boosted hopes a global recession might be avoided, though details of any deal were still to come.MKTS/GLOB
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