Soybean futures rise on China Covid curbs, weakening dollar

Chicago wheat, corn and soybeans rose on Friday, underpinned by strong commodities and equities markets, as well as hopes that China's easing of Covid-19 restrictions could boost demand.

Soybeans bounced on hopes that China's move to ease some Covid-19 curbs might spur economic activity, potentially boosting demand for goods including soybeans.

China on Friday shortened quarantine by two days for close contacts of infected people and for inbound travellers, and removed a penalty for airlines for bringing in too many cases. The loosening of curbs cheered markets even as experts cautioned that reopening probably remained a long way off.

"The market is viewing that news as something spectacular," said Jack Scoville, market analyst at the Price Futures Group.

Strength in crude oil also lent support to soybeans, as well as the corn market on the day. Corn sometimes follows trends in crude oil, due to its role as the main US feedstock for ethanol fuel.

And the dollar dipped for a second trading day, as investors bet that peaking US inflation will prompt the Federal Reserve to hold back interest rate hikes.

That, in turn, bolstered agricultural commodities, as a weaker dollar is typically seen as making US goods more competitive on the global market, traders said.

Wheat futures firmed on bargain buying, a day after the CBOT December contract WZ2 dipped to a two-month low, and continued uncertainty about grain exports from Ukraine because of Russia's invasion.

Talks between a Russian delegation and senior UN officials to address Moscow's grievances about the Black Sea grains export initiative began in Geneva, with the present deal expiring on 19 Nov, plus efforts to smooth shipments of Russian food and fertilisers, a UN spokesperson said.

Chicago Board of Trade most active wheat settled up 10-1/4 cents at $8.13-3/4 a bushel. Corn settled the day up 4-3/4 cents to $6-58 a bushel, and soybeans were up 27 cents at $14.50 a bushel.