SINGAPORE/HAMBURG: Chicago soybeans rose to 15-month highs on Monday on expectations China will restart large-scale US soy buying after the two countries reached a deal to de-escalate their trade war. Wheat also rose on hopes of renewed Chinese buying and corn firmed, tracking soybean strength.
“The market is expecting China to cut tariffs on US soybeans and buy large volumes,” a Singapore-based trader said. Chicago Board of Trade most-active soybeans rose 0.5percent to USD11.21-1/4 a bushel at 1101 GMT, around their highest since July 2024.
Wheat rose 1.5percent to USD5.42-1/4 a bushel, while corn rose 0.2percent to USD4.32-3/4 a bushel. Markets rose last week after the US said China would buy millions of tons of US soybeans as part of a trade deal. China has shunned US soybeans during the trade dispute, buying from South America instead.
Support also came from reports China was interested in buying US wheat. But the US government shutdown is depriving dealers of news about new US export sales via the usual daily flash sales announcements from the US Department of Agriculture.
“Daily US flash sales remain unavailable due to the government shutdown, making it hard to confirm whether China has resumed buying US soybeans, so the market may trade on unconfirmed rumours for a while,” commodity data firm CM Navigator said in a note.
“Reports of Chinese interest in US soybeans, and possibly wheat, appear to be lifting prices this morning,” it said. China last week bought three US soybean shipments, the country’s first purchases from this year’s US harvest.
The US on Saturday released details about the US-China trade agreement including intended Chinese soybean purchases. Dealers are awaiting announcements from China about reductions in punitive import tariffs on US agricultural products which would open the door to more US sales.
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