By Kirk Maltais 
 

--Soybeans for November delivery rose 2.3% to $9.19 1/4 a bushel on the Chicago Board of Trade Friday, as traders reacted to talk of Chinese state buyers purchasing large soybean lots.

--Wheat for September delivery rose 1.8% to $5.02 1/2 a bushel.

--Corn for December delivery rose 1.4% to $4.35 3/4 a bushel.

HIGHLIGHTS

Healthy Dose of Skepticism: Although the rise in soybeans futures shows optimism among some traders and investors that China is returning to the negotiation table, other agricultural research firms maintained healthy doubts that Chinese state buyers will pull the trigger on large purchases, contending that they haven't seen any evidence of them. "[We] cannot find any cash confirmation of such purchases," said AgResource.

Short-Covering Rally: Traders and funds alike looked to cover any open short positions following this week's downward momentum as moderating temperatures in the Corn Belt weakened expectations for additional crop damage. "A significant amount of risk premium has been taken out of the market this week and now some of this is being replaced," said Karl Setzer of AgriVisor.

INSIGHT

Where's the Heat?: Corn futures have had a down week as expectations of extreme heat coming to the Corn Belt don't seem to be panning out. However, the downturn is likely temporary due to earlier damage from flooding, says Doug Bergman of RCM Alternatives. "I don't think the historic weather event that impacted planting this year has been completely priced in," he said. Mr. Bergman added that he expects traders to do more buying in trading next week.

Back to the Table: A Thursday teleconference with Chinese officials and U.S. Treasury Secretary Steven Mnuchin was of keen interest to soybean traders, but no news has emerged of how the talks went. Despite a doubtful outlook by many traders, the rumor of more Chinese buying of soybeans offset the otherwise negative view.

Syngenta Gets Soaked: Persistent rain and flooding that raked the U.S. Midwest over the spring contributed to a 34% drop in first-half profits for Syngenta, as farmers were forced to skip pesticide spraying and in some cases left rain-saturated fields unplanted altogether. Syngenta's North America pesticide sales fell 14% and seed sales fell 16% declined from the prior year, the Swiss-based, Chinese-owned agriculture company said, pushing overall net income to $798 million for the period, versus $1.21 billion in 2018.

AHEAD

--The USDA releases its weekly grain export inspections data at 11 a.m. EDT Monday.

--The USDA provides its weekly update on U.S. crop progress at 4 p.m. EDT Monday.

Jacob Bunge contributed to this article.

(END) Dow Jones Newswires

July 19, 2019 16:06 ET (20:06 GMT)