CHICAGO, Dec. 7 (Xinhua) -- Chicago Board of Trade (CBOT) soybean futures gained double digits in the past trading week over renewed U.S.-China trade optimism, while wheat and corn fell sharply due to downbeat export sales.
The most active soybean contract for January delivery rose 12.75 cents during the week ending Dec. 6, or 1.45 percent, to close at 8.895 U.S. dollars per bushel. March corn was down 4.5 cents, or 1.18 percent, to settle at 3.7675 dollars per bushel. March wheat fell 17.25 cents, or 3.18 percent week on week, to end at 5.245 dollars per bushel.
CBOT soybeans had suffered losses in four straight weeks. During this past week, the market was finally buoyed by renewed hopes among investors for a U.S.-China trade deal, which is crucial to the outlook of U.S. soybean exports.
On Friday an announcement from the Customs Tariff Commission of China's State Council said that China, as the world's top soybean buyer, is working on tax exemptions on part of the soybeans and pork imported from the United States in light of applications submitted by related enterprises.
The commission will dedicate a range of goods to be excluded from tariff countermeasures against the U.S. Section 301 measure, said the announcement.
Chinese enterprises import a certain amount of goods from the United States through market-based procurement and in accordance with domestic needs. The enterprises are expected to purchase goods eligible for exemption on the basis of independent negotiation, import as they see fit, and bear the related profits or losses, it said.
Technically, nearby CBOT soybean futures were at the most oversold level since last May, according to the Chicago-based agricultural research firm AgResource.
Ted Seifried, chief market strategist of Zaner Ag Hedge, shared a similar view. "I think we're just simply too oversold in the soybeans. We've gotten down to price levels that I think might be too cheap."
As for CBOT wheat and corn, downbeat export sales dragged down their prices.
According to the U.S. Department of Agriculture (USDA), for the period of Nov. 22-28, the net U.S. wheat sales reached only 228,100 metric tons for the 2019/20 marketing year, down 63 percent from the previous week and 45 percent from the prior four-week average.
For the same period, the net U.S. corn sales were pegged at 546,100 metric tons, down 32 percent from the previous week and 18 percent from the prior four-week average.
In another USDA report, for the week ending Nov. 28, export wheat inspections totaled 246,988 metric tons, down sharply from 434,703 metric tons during the previous week.
"The world market needs a spark to push (wheat prices) to new highs," AgResource wrote in a weekend note.
Meanwhile, CBOT corn traders are keeping their eyes on South American weather conditions and the trade talks between Washington and Beijing, hoping that a trade deal can raise the demand for U.S. corn supplies.
