(Recasts, updates with U.S. trading, adds new analyst quote, changes byline/dateline; pvs PARIS/SINGAPORE)
By Mark Weinraub
CHICAGO, Aug 13 (Reuters) - Chicago Board of Trade soybean futures rose 1.7 percent on Tuesday, rebounding from Monday’s decline, on signs of easing tensions in the U.S-China trade fight as well as concerns about dry conditions hindering crop development in the Midwest.
Corn futures weakened for the second day in a row, sinking 2.4 percent to a three-month low as the U.S. Agriculture Department’s U.S. production forecast issued on Monday continued to pressure the market, traders said.
“Corn has followed through on yesterday’s limit-down USDA reaction,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients. “But soybeans are rebelling on a shaky acreage number going forward and plenty of risk left for 2019 production, especially given a dry outlook through the end of August.”
Wheat futures rose after finding technical support near Monday’s low.
At 9:39 a.m. CDT (1439 GMT), Chicago Board of Trade November soybean futures were up 15-3/4 cents at $8.82-1/2 a bushel, on track for its fourth day of gains in five sessions.
The Trump administration will delay imposing a 10% tariff on certain Chinese products, including laptops and cellphones, that had been scheduled to start next month, the Office of the U.S. Trade Representative said on Tuesday.
Chinese Vice Premier Liu He conducted a phone call with U.S. trade officials, China’s Ministry of Commerce said in a statement Tuesday. Liu spoke with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.
CBOT December corn was 9-1/4 cents lower at $3.83-1/2 a bushel after hitting a low of $3.78-1/4 a bushel. That was the lowest traded price for the most-active contract since May 16.
The USDA surprised grain markets on Monday by raising its outlook for this year’s U.S. corn production as it reduced its estimate of rain-hit plantings by less than expected while increasing its harvest yield projection.
“The market was shocked by the USDA’s estimates of both area and yield,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. “Getting rid of that extra corn takes a lot more chewing, distilling and shipping than the market was expecting.”
CBOT September soft red winter wheat futures were 4-1/2 cents higher at $4.80-3/4 a bushel.
Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Susan Fenton and Steve Orlofsky