PARIS/SINGAPORE: Soybean prices rose to a two-month high on Wednesday, underpinned by expectations of a de-escalation in the U.S.-China trade conflict, while wheat prices edged higher and corn futures fell.
Financial markets calmed after U.S. President Donald Trump said he had no plans to fire the head of the Federal Reserve and hinted at lower China tariffs.
U.S. Treasury Secretary Scott Bessent said on Tuesday he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a “slog”.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was 0.7% higher at $10.52-3/4 a bushel by 1047 GMT, after touching $10.58, the highest since February 24, earlier in the session.
China is by far the world’s biggest soybean importer.
Corn fell 0.2% to $4.82-1/4 a bushel and wheat gained 0.2% to $5.51-1/2 a bushel.
Corn prices were curbed by forecasts for limited rainfall in the U.S. Midwest, boosting expectations that farmers will be able to continue planting without major disruptions in the coming weeks.
China’s soybean imports from US jump in March, but Brazil set to dominate market
On Tuesday, the European Union’s crop monitoring service MARS slightly raised its forecast for this year’s soft wheat yield in the region, but warned that dry conditions in the north of the bloc could hamper crop development.
“While the global wheat balance remains relatively stable, corn fundamentals are stronger, particularly in the United States, where demand remains dynamic,” Argus’s Agritel consultancy said in a note.
Commodity funds were net sellers of CBOT corn and soymeal futures contracts on Tuesday, traders said. Funds were net buyers of soybeans and net even on wheat and soyoil contracts, traders said.
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