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Soybeans firm on hopes of China-US trade talks

November 08, 2018 00:00:00

SINGAPORE, Nov 07 (Reuters): Chicago soybeans ticked higher on Tuesday as the latest comments from Chinese authorities raised hopes Beijing is committed to resolve its trade dispute with Washington.

Corn edged lower after climbing to its highest in nearly three weeks on Monday, driven by expectations the US Department of Agriculture will reduce its production estimate.

The most-active soybean contract on the Chicago Board Of Trade was up 0.1 per cent at $8.86-1/2 a bushel, as of 0413 GMT, having closed down 0.2 per cent on Monday.

Corn slipped 0.1 per cent to $3.73-1/2 a bushel having climbed in the previous session to its highest since Oct. 17 at $3.74-1/4 a bushel and wheat dipped 0.1 per cent to $5.07 a bushel.

China is ready to hold discussions and work with the United States to resolve trade disputes because the world's two largest economies stand to lose from confrontation, Vice President Wang Qishan said on Tuesday.

"There is hope and that is why the soybean market is holding up," said one India-based agricultural commodities analyst. "But any further gains will depend on what concrete steps the two countries take to ease tensions."

Soybean exports from the United States, the world's second largest supplier, to China, the No. 1 buyer, have come to a halt as a result of the trade war. After the market closed on Monday, the US Department of Agriculture said 83 per cent of the soybean crop had been harvested as compared with 72 per cent a week ago but below the average pace of 89 per cent.

The agency said 76 per cent of the corn crop had been harvested, up from 63 per cent a week ago and not far from the average pace of 77 per cent.

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