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Chicago wheat futures rebounded on Thursday after a four-day slide, while the grains market overall steadied as US and China trade negotiators sketched an outline for what could be a deal to end the trade war. Thursday's technical bounce in wheat was encouraged by optimism over the trade negotiations, which also helped soyabean and corn futures gain ground.

Wheat dropped to a seven-month low on Wednesday as disappointing export news, including the absence of US wheat offers in an Egyptian tender on Wednesday, and investment fund selling took prices through chart support levels.

On Thursday, the most-active wheat contract on the Chicago Board of Trade

was up 2.12 percent at $4.94-1/2 a bushel by 11:54 a.m. CDT (1754 GMT). On Wednesday, the contract hit its lowest since July 12 at $4.75-3/4.

Soyabeans were up 1 percent at $9.11-1/2 a bushel, and corn was up 1.69 percent at $3.77-1/4 a bushel.

Traders said soyabean futures were briefly supported on Thursday by Bloomberg reporting that China is expected to propose buying an additional $30 billion of US agricultural imports annually.

But skepticism about the report kept a cap on the soyabean rally, said Joe Davis, director of commodity sales for Futures International in Chicago.

The corn market has also been supported by recurring talk that China could make large purchases of the cereal as part of a trade settlement with Washington.

The market's attention also was turned to US Department of Agriculture (USDA) planting estimates on Thursday.

For this spring, the agency projected that US farmers would plant 85 million acres of soyabeans, down from 89.2 million acres in 2018; 47 million acres of wheat, down from 47.8 million acres in 2018; and 92 million acres of corn, up from 89.1 million acres in 2018.

Analysts had expected USDA to show a drop in wheat and soyabean acreage and an increase for corn.

Copyright Reuters, 2019


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