Soybean futures prices advanced at the Chicago Board of Trade Friday as a team of Soviet grain buyers prepared to come to this country next week.
On other markets, petroleum futures were sharply higher; metals posted gains; cattle advanced; and pork futures were mostly lower.Renewed hopes of an emergency food deal with the Soviet Union and a report that Brazil had reduced its planting by 15 percent gave soybean futures enough of a jolt to send prices up by more than 11 cents a bushel in early trading.
"There seems to be a consensus in the market that eventually the Soviets and the U.S. will come to terms" on emergency aid, said Joel Karlin, a grain analyst in Chicago.
The Soviet team reportedly will be discussing export credits and their country's long-term grain agreement with the United States. How much attention will be given the Soviet Union's food needs for this winter was not known.
Wheat settled 1/4 cent lower to 1 cent higher with the contract for delivery in December at $2.483/4 a bushel; corn was 1 cent to 23/4 cents higher with December at $2.221/2 a bushel; oats were 3/4 cent to 11/4 cents higher with December at $1.081/2 a bushel; and soybeans were 3 cents to 43/4 cents higher with January at $5.82 a bushel.
The prospect of a U.N. Security Council vote next week on using force to remove Iraqi troops from Kuwait was the latest Persian Gulf development to send petroleum futures sharply higher on the New York Mercantile Exchange.
The price gains were sustained because of the Persian Gulf developments and the vague uncertainty produced by Margaret Thatcher's announced resignation as prime minister of Great Britain, said Brian Tagler of Shearson Lehman Hutton.
Light sweet crude oil settled 75 cents to $2.27 higher with the January contract at $31.90 a barrel; heating oil was 2.10 cents to 4 cents higher with December at 88.66 cents a gallon; and unleaded gasoline was 3.30 cents to 3.54 cents higher with December at 82.40 cents a gallon.