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Soybeans jump 1%, set for biggest weekly gain in over 2 months

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SYDNEY — U.S. soybeans rose over 1% on Friday after sources said the United States and China had reached a trade deal in principle, pushing the oilseed towards its biggest weekly gain in more than two months.

FUNDAMENTALS

* The most-active soybean futures on the Chicago Board of Trade rose more than 2% for the week, the biggest weekly gain since Oct. 4.

* Soybeans hit a high of $9.14-1/2 a bushel on Friday – the highest since Nov. 20.

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* The most-active corn futures were up over 1% for the week after shedding 1.2% last week.

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* Corn on Friday hit a high of $3.84 a bushel, a Dec. 3 high.

* The most-active wheat futures up more than 1% for the week after losing more than 3% in the previous week.

* The White House has agreed to suspend some tariffs on Chinese goods and reduce others in return for Beijing’s pledge to hike purchases of U.S. farm products in 2020, sources said on Thursday.

* A source briefed on the status of bilateral negotiations said the United States would suspend tariffs on $160 billion in Chinese goods expected to go into effect on Dec. 15 and roll back existing tariffs.

* In return, Beijing would agree to buy $50 billion in U.S. agricultural goods in 2020, double what it bought in 2017, before the trade conflict started, two U.S.-based sources briefed on the talks said.

* Additional support stemmed from news that the U.S. Department of Agriculture confirmed private sales of 1.6 million tonnes of corn to Mexico, the fifth-biggest one-day U.S. corn sale on record.

* Consultancy Strategie Grains said soft wheat production in the European Union would fall 3.6% in 2020 to 140.5 million tonnes, reflecting a decline in seeding.

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MARKET NEWS

* The pound rose to a three-and-a-half year high versus the euro and the highest in more than a year versus the dollar after exit polls suggested a win for the Conservatives, which should help ensure the UK’s smooth exit from the European Union.

* Oil prices extended gains, scaling three-month highs as the United States and China moved closer to a resolution to the 18-month trade war between the world’s two biggest economies that has raised big questions about global demand for crude.

* Wall Street’s main indexes hit record highs on Thursday following news that the United States had reached a “deal in principle” with China to resolve a trade war that has rattled markets for nearly two years. (Reporting by Colin Packham; editing by Uttaresh.V)

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