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Grains Rally on Weather, Subsiding Fears of Trade Wars

April 27, 2018 at 19:58 by Vladimir Vyun

Grains rallied across the board today, joining other agricultural commodities in a rally. Analysts named various possible reasons for the rally.

Some market analysts mentioned subsiding fears of trade wars between the United States. Previously, there were concerns that potential tariff hikes from China would hurt the US agricultural market as the USA export many of their agricultural products, most notable of them being soybeans, to the Asian nation. Yet as the world’s two biggest economies stopped threatening each other with new tariffs, at least for the time being, traders became less pessimistic.

Others attributed the rally to weather. According to the forecast from the National Oceanic Atmospheric Administration, temperatures should be relatively low in the mid-west for the next two weeks. Additionally, poor weather was hurting crops in South America. The situations was so bad that Argentina, the word’s third biggest exporter of soybeans, started to import the commodity from the United States to meet demand.

Contract for delivery of soybeans in July advanced 0.82% to $3.985 per bushel as of 19:47 GMT on CBoT today. Wheat jumped as much as 1.84% to $4.985 per bushel. Soybean prices climbed 1.61% to $10.5625 per bushel.

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