Soybeans rose and grains rose in overnight trading after China eased some Covid restrictions and amid continued signs of demand for U.S. supplies. China has reportedly reduced the amount of time people who have had close contact with those infected with the virus must spend in quarantine, easing its so-called Covid Zero policy.
The country's government also said it would eliminate a program under which airlines are penalized for bringing in Covid cases, the government said, according to several reports. The move was a boon for all commodities as US and international oil benchmarks surged more than 3% this morning and Asian equity markets soared. Overnight US stock futures were also higher.
Prices are also rising on signs of demand for US grains and beans. Exporters sold 209,931 metric tons of corn to Mexico for delivery in the 2022-2023 business year, which began Sept. 1, the U.S. Department of Agriculture said in a report yesterday.
This marks the third straight day that the USDA has announced major sales of domestic agricultural products to overseas buyers. On Wednesday, the agency said exporters had sold 264,000 metric tons of soybeans to China and another 198,000 tons to an unidentified country.
Reported sales on Tuesday totaled 338,600 tonnes of corn to Mexico, 144,000 tonnes of soybeans to Mexico, 138,700 tonnes of soybeans to China and another 132,000 tonnes of soybeans to an unknown destination, the USDA said. Cold weather is expected over the weekend in parts of Oklahoma and North Texas, where winter wheat varieties are growing, according to data from the National Weather Service.