SINGAPORE- Chicago soybean futures rose for a third consecutive session on Wednesday as the market continued to recover from a two-month low reached earlier this week, although gains were curbed by fears that the coronavirus outbreak will curb demand.
Corn prices slid, giving up some of the previous session’s gains, while wheat rose.
“We have a bit of support from gains in stock markets but there is not much potential for soybean prices to go higher, certainly not for the moment, as the virus is curbing demand,” said Phin Ziebell, agribusiness economist, National Australia Bank.
The most-active soybean contract on the Chicago Board of Trade rose 0.2 percent to $8.81-1/4 a bushel, having firmed 0.3 percent on Tuesday.
Corn was down 0.1 percent to $3.81-3/4 a bushel, having gained 0.9 percent in the previous session, and wheat added 0.4 percent to $5.59-1/2 a bushel, having closed up 0.3 percent on Tuesday.
Asian stocks steadied as Chinese stocks nudged higher on hopes of additional stimulus to lessen the economic impact of the coronavirus outbreak, but risks remain as the illness continues to spread.
The death toll in China has passed 490, as two US airlines suspended flights to Hong Kong following the first fatality there and 10 cases were confirmed on a quarantined Japanese cruise ship.
White House economic adviser Larry Kudlow said the coronavirus would delay a surge in US exports to China expected from the Phase 1 trade deal.
The agreement, signed on Jan. 15 and taking effect on Feb. 15, suspended a new round of US tariffs in exchange for Chinese purchases of agricultural, energy and manufactured goods and services. – Reuters
