By Kirk Maltais 
 

-- Soybean contracts for March delivery rose 1% to $9.16 3/4 a bushel at the Chicago Board of Trade Friday.

-- March corn contracts were up 0.5% at $3.81 3/4 a bushel.

-- March wheat contracts closed unchanged at $5.17 3/4 a bushel.

HIGHLIGHTS

Soybean contracts for March delivery rose 1% to $9.16 3/4 a bushel at the Chicago Board of Trade Friday, as traders felt a new wave of optimism that U.S.-China negotiations may yield tangible results soon.

Chinese Activity Spurs Fresh Optimism: Reports of large grain trades overseas are being seen as an indicator of what kind of purchasing activity is being seen in the U.S. while the government is shut down and not reporting trade news. Soybeans saw the biggest jump off of the reports, but corn also went up on rumors of Chinese interest.

Traders Still Flying Blind: Without USDA or CFTC data to reference, traders continue to rely on internal calculations in order to predict movement on the grains markets. In some cases, including predicting the activity of larger hedge funds, this practice is become less reliable by the day. "The problem is, the farther you get away from the (Dec. 18 CFTC report), it's hard to have confidence," said Craig Turner of Daniels Trading. "I'd be very impressed if they're accurate when this is all said and done."

INSIGHT

U.S. Officials Hint at Lifting China Tariffs: Treasury Secretary Steve Mnuchin is reportedly a proponent of lifting some or all of the U.S. tariffs on China, in order to bring about a trade deal sooner and end the spat between the two nations. This has been met by opposition from other officials, including U.S. Trade Representative Robert Lighthizer. The two sides have until March 1 to make a deal, or else tariffs on $200 billion of Chinese goods will jump from 10% to 25%.

Shutdown Drags Into 28th Day: The government shutdown lumbered into its 28th day, with President Trump and House Democrats no closer to a deal regarding the U.S.-Mexico border. On Twitter today, Trump sent a number of tweets continuing to criticize Democrats for not agreeing to build a southern border wall.

AHEAD

-- Martin Luther King Day will be observed on Monday, with grains not being traded on the CBOT. Normal hours will resume on Tuesday.

-- USDA export inspections to be released on Tuesday--one of the few datasets still being published during the shutdown.

(END) Dow Jones Newswires

January 18, 2019 15:59 ET (20:59 GMT)