CHICAGO: US soyabean futures hit a 4-1/2-month high on Wednesday as China bought US soyabeans for the first time since US President Donald Trump and his Chinese counterpart Xi Jinping met in early December.

State-owned Chinese companies bought at least 500,000 tonnes of US soyabeans, two US traders said, in deals valued at more than $180 million.

But the market pared gains as news of the sale removed some of the uncertainty that had supported futures in recent days as rumors swirled about more imminent Chinese purchases.

As of 12:09 p.m. CST (1809 GMT), the Chicago Board of Trade (CBOT) January soyabean contract was up 3-3/4 cents at $9.18-3/4 a bushel after reaching $9.28, its highest since July 31, and the highest for a most-active contract since June 15. CBOT March wheat was up 7 cents at $5.28 a bushel and March corn was up 1/4 cent at $3.85 a bushel.

Soyabeans got an early boost after Trump said China was back in the market buying US beans. Trump told Reuters on Tuesday that China was buying a “tremendous amount” of US soyabeans and that trade talks with Beijing were already under way by telephone, with more meetings likely among US and Chinese officials.

China is the largest buyer of US soya, importing about 60 percent of all US overseas shipments last year in deals valued at more than $12 billion. But the world’s top importer has purchased little since Beijing slapped steep tariffs on US shipments on July 6 in retaliation for duties on Chinese goods.

As soyabeans firmed, CBOT March wheat rose more than 1 percent on technical buying and signs of rising global prices.—Reuters