CHICAGO, May 18 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed higher in the trading week which ended May 17, with soybean futures first jumping on big short-covering in three straight sections then plunging over 3 percent on Friday, amid escalating trade frictions and short-covering.
The most active contract for July soybeans added 12.5 U.S. cents weekly, or 1.54 percent, to 8.2175 dollars per bushel. July wheat jumped 40.25 cents, or 9.48 percent, to 4.86 dollars per bushel. July corn went up 31.5 cents, or 8.96 percent, to 3.8325 dollars per bushel.
CBOT soybean futures dropped over 2 percent on Friday, as traders showed increasing concerns over uncertainty in the trade talks between the United States and China.
U.S. Treasury Secretary Steven Mnuchin said Wednesday that he expected to travel to China to continue talks in the near future after the two countries held constructive talks at the 11th round of high-level economic and trade consultations.
In response, Chinese Foreign Ministry spokesperson Lu Kang said Thursday "For negotiations and consultations to make sense, there must be sincerity."
Lu called on the United States to observe the principle of mutual respect, equality and mutual benefits, keep its promises and make its actions accord with words.
As a result, soybean futures plunged on concerns about rising tensions that threatened to prolong U.S.-China trade frictions that have chilled demand for U.S. soybean exports from the world's top buyer China.
But in the previous three sections, soybeans marked three straight days of gains, especially on Tuesday with big gain of 29 cents per bushel, or 3.61 percent for most active contract.
Short-covering and bargain buying contribute to most rise of the oil seed. Analysts said speculators already hold big short position in the market and they are ready to look for exit doors, which could cause fluctuation in the recent weeks.
Corn futures extended their rally, jumping to a four-month high this week, as forecasts of heavy rain sweeping a wide path across the U.S. Midwest next week fueled concerns about worsening planting delays.
Corn futures also rose after the U.S. Department of Agriculture (USDA) late on Monday reported that the planting pace for corn and soybeans was slower than expected amid widespread weather delays.
U.S. farmers had seeded just 30 percent of their corn crop as of May 12, according to the USDA report.
The soybean crop was 9 percent planted, behind the five-year average of 29 percent and the average trade estimate of 15 percent.
CBOT wheat futures were supported by the strength of corn and soybean futures, and ample supply of wheat crop worldwide also put wheat prices under pressure.
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