Rumours of large scale US grain purchases by China have riled markets this week, but official confirmation of such deals has not been available due to the partial US government shutdown that has shuttered numerous divisions of the US Department of Agriculture. Chicago Board of Trade (CBOT) March soyabeans were up 10-1/4 cents at $9.18 a bushel at 10:48 a.m. CST (1648 GMT), March corn gained 1-3/4 cents to $3.81-3/4 a bushel and CBOT wheat rose 1/4 cent to $5.18 a bushel.
All three commodities held chart support at their 50-day moving averages and, after a week of price moves fuelled by technical trading, were on pace for weekly gains. Bloomberg reported on Friday that China offered to go on a six-year buying spree to ramp up imports from the United States in an effort to cut its trade imbalance.
Gains in grains have been modest, however, as traders remained cautious in the absence of confirmed Chinese purchases and signs that the negotiating parties are following through on their trade proposals. Soyabean and corn markets weighed harvest prospects in South America, where adverse weather has dented yield prospects.