Soybeans steady after Trump’s China broadside drives down prices

CANBERRA: Chicago soybean futures steadied on Monday after an escalation in US-China trade tensions pushed prices down 1.5% in the previous session by reducing hopes that Beijing would end its boycott of US beans.

Corn and wheat futures followed soybeans, rising slightly after dropping sharply on Friday.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $10.08-1/2 a bushel at 0554 GMT.

CBOT corn rose 0.1% to $4.13-1/4 a bushel and wheat climbed 0.2% to $4.99-1/4 a bushel.

All three contracts are under pressure from ample global supply, with prices far below highs reached in 2022 and wheat slipping to a five-year low on Friday.

US President Donald Trump said on Friday he would sharply raise tariffs on China from November 1 in retaliation against Beijing’s announcement of port fees for US vessels and curbs on Chinese critical mineral exports.

The burst of protectionism knocked global stock markets and oil prices, though Trump sounded more conciliatory over the weekend.

Trump also cast doubt on whether he would meet President Xi Jinping later this month, undermining hopes that the talks could lead to a resumption of Chinese purchases of US soybeans.

China, which typically buys billions of dollars’ worth of US soy each year, has not bought any from the new harvest, buying South American beans instead. China’s actions have pushed up soybean prices in Brazil and pushed down prices in the United States.

Prices are likely to regain some ground if Trump reaches a deal with Beijing and slip further if he does not, said Rabobank Vitor Pistoia.

“We’ll see a Chicago price around $10 a bushel until we have an announcement - whether an agreement or no agreement - that sets a clear direction.”

Meanwhile, US farmers are waiting for a government aid package that Pistoia said would be needed to keep US farmers afloat and ensure they plant next season’s crop.

In wheat markets, consultants Sovecon raised their forecast for Russia’s 2025 wheat crop on Friday to 87.8 million metric tons from 87.2 million tons.

Russia is the world’s largest wheat exporter and has reaped a series of large harvests.