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Chicago soybeans rally as China cuts rates; wheat, corn lower

Xinhua, August 26, 2015 Adjust font size:

Chicago Board of Trade (CBOT) agricultural commodities closed mixed on Tuesday with soybean futures rebounding amid expectations that an interest-rate cut from China would lift the country's soy demand, while corn and wheat retreating as the U.S. dollar strengthened.

The most active corn contract for December delivery lost 3.5 cents, or 0.92 percent, to close at 3.77 U.S. dollars per bushel. September wheat delivery shed 8.5 cents, or 1.67 percent, to close at 4.995 dollars per bushel. November soybeans gained 3.75 cents, or 0.43 percent, to close at 8.7775 dollars per bushel.

Chicago soybeans snapped a 2-session losing streak on Tuesday after the People's Bank of China announced to cut the reserve requirement ratio (RRR) and lower key interest rates. Analysts said the reserve cut will allow Chinese banks to increase their lending, maybe lifting soy demand from Chinese consumers.

Global wheat demand remains slow, continuing to put more pressure on Chicago wheat futures, which settled off more than 1 percent on Tuesday.

The strong rally of the U.S. dollar Tuesday had also weakened the grains. The U.S. Dollar Index Tuesday stepped back from the previous sharp decline on upbeat U.S. economic data, weighing on dollar-denominated agricultural commodities.

Later Monday afternoon, the U.S. Department of Agriculture(USDA) reported that U.S. corn and soybean crops in good and excellent conditions held steady at 69 percent and 63 percent, respectively. The corn rating was just 3 percent below last year while soybeans were down 7 percent. Enditem