Beijing/Hamburg (Reuters) – Soybeans traded on the Chicago Stock Exchange rose on Monday (27) on expectations that the United States could restart its oilseed exports to China, after US President Donald Trump said he hoped to reach a trade agreement with Beijing during his visit to Asia this week.
The most active contract closed up 25.50 cents at US$10.6725 per bushel, after reaching its highest value since June 20.
Traders hope that a possible trade deal between the US and China could resume massive US soybean exports to China, which have been all but halted by the trade war between the two countries.
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Trump said Monday that the U.S. and China are ready to “come out with” a trade deal, and he is expected to meet Chinese President Xi Jinping later this week in South Korea during his Asia tour.
“Soybeans are rising on upbeat news about trade talks with China, also supporting corn and wheat,” said Matt Ammermann, commodity risk manager at StoneX.
“But the market needs facts and details about any deal between the US and China, as fear and exaggeration are currently the main negotiating factors.”
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“The central question is whether China will resume purchasing US soybeans.”
U.S. Treasury Secretary Scott Bessent said Sunday that U.S. and Chinese officials have reached a trade agreement and that he anticipates China will resume substantial purchases of U.S. soybeans with trade talks in Malaysia this week.
“There is talk that China continues to reserve cargoes of Brazilian soybeans for shipment between December and March,” said Ammermann. “But it appears that China still has 5 to 8 million tons of soybean purchases needed to fill the gap from Brazil’s new crop, so China still has a supply need that could be transferred to the US.”
In other commodities, corn also benefited from expectations with the trade agreement.
The December contract ended with a gain of 5.50 cents, US$4.2875 per bushel, after reaching a maximum since July 3. Wheat advanced 13.50 cents to US$5.26 per bushel.
