China's Soybean Purchases Boost Grain Markets Amid Black Sea Tensions
Chicago Board of Trade Wheat Futures rebounded on Friday after dropping to a four-week low. The weaker US dollar helped traders assess reports of further attacks in the Black Sea Export Zone and focus on U.S. crop and jobs data.
The corn price recovered from its three-week low, driven by improved U.S. crops prospects. Soybeans rose for a second day due to China's purchases of at least 10 additional cargoes of U.S. soya beans in advance of President Xi Jinping's anticipated U.S. trip next month.
China has purchased about 6 million tons of soybeans for the U.S. harvest year, which begins on September 1. According to the White House, these deals are the result of trade talks between Washington DC and Beijing, which included Chinese commitments to buy 25 million tons of U.S. soya beans annually.
Traders are weighing the disruption of shipments out of Russia and Ukraine against a large global supply, including in the Black Sea Region, and slow import demand. Dennis Voznesenski, Commonwealth Bank analyst, said: 'The grain is already there.' The big question is now whether they can get it out, which determines whether prices will go up or down.