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US soyabean and corn futures fell on Tuesday to session lows on reports that the Trump administration turned down Chinese offers this week for preparatory trade talks, brokers said. The declines in corn and soyabeans also pared advances in wheat futures, which had drawn early support from rising Russian cash prices.

As of 12:48 p.m. CST (1848 GMT), Chicago Board of Trade March soyabean futures were down 9-3/4 cents at $9.07 a bushel after dipping to $8.99-1/2, breaking below chart support at the contract's 50-day moving average near $9.06. CBOT March corn was down 3-1/4 cents at $3.78-1/2 a bushel. March wheat was up 3 cents at $5.20-3/4 a bushel, after reaching $5.26, a one-month high.

Soyabeans and corn tumbled after the Financial Times reported that the Trump administration rejected an offer from China for preparatory trade talks this week ahead of high-level meetings next week. Losses in US equity markets deepened and the dollar weakened against the Japanese yen after the FT report, on concern the trade war between the world's two biggest economies will continue and ultimately harm the global economy.

CBOT wheat clung to modest advances, firming after briefly dipping lower following the slide in soyabeans and corn. Rumours of such large-scale purchases by China have swirled in markets in the past week, but official confirmation is unavailable because of the partial US government shutdown, which has affected the US Agriculture Department.

Copyright Reuters, 2019


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