Soybean Futures Hit 8-Week High on Hopes of US-China Deal
Washington Continues to Press Beijing, the World’s Largest Agricultural Importer
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Soybean prices extended their gains for a fourth consecutive day as markets grew increasingly optimistic about a potential breakthrough at the upcoming meeting between President Donald Trump and Chinese President Xi Jinping.
Amid a wide-ranging agenda of complex geopolitical and tradeissuesincluding rare earths, Taiwan, ship tariffs and aircraft parts, Washington continues to press Beijing, the world’s largest agricultural importer, to increase purchases of U.S. soybeans.
Waiting times for commodity vessels anchored off Chinese ports have reached theirlongestthis year as tensions between Beijing and Washington continue to disrupt global trade.
Meanwhile, the ongoing U.S. soybean harvest has shown higher-than-average quality, according to a Bloomberg analyst survey. “China and U.S. headlines continue to support a shift in soybean momentum,” said James Day, TP ICAP Ags & Softs consultant.
Matt Ammermann, a commodity risk manager at StoneX, wrote in a note that an agreement between the two sides could be reached within the next 10 days, which may temporarily allow rare earth minerals and magnets to flow to the U.S. and soybeans to China.
However, he added that such a deal would not resolve the deeper conflict between the two countries.
Soybean futures in Chicago rose as much as 0.62% to $10.56 a bushel in Oct. 21 trading, marking an eight-week high.
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