Chicago soybean prices rose on Wednesday, partially recovering losses from the previous session, as Beijing confirmed it would cut tariffs on U.S. farm goods, drawing renewed attention to the trade truce between the two countries.
The most-active January soybean contract on the Chicago Board of Trade closed up 12-3/4 cents at $11.34-1/4 per bushel. Corn futures rose 3-3/4 cents to $4.35-1/4, while wheat ended 4-1/2 cents higher at $5.54-3/4 per bushel.
Analysts noted that gains were tempered by the limited scale of Chinese purchases since the truce and broader declines in financial markets. China’s suspension of retaliatory tariffs followed last week’s meeting between President Xi Jinping and President Donald Trump, but imports of U.S. soybeans will still face a 13 per cent levy.
“The news that China is cutting tariffs on several ag products is positive, along with simple technical buying. Soybeans are taking more support from the rebound in meal,” said Karl Setzer, partner at Consus Ag Consulting. Market participants are closely watching Beijing’s pledge to buy tens of millions of metric tons of U.S. soybeans, including 12 million over November and December.
The ongoing U.S. government shutdown has kept USDA flash export sales reports on hold, limiting transparency over actual U.S. shipments to China and creating uncertainty in the market.
Corn futures were further supported by record weekly ethanol production, while wheat held some ground due to ongoing speculation about Chinese interest in U.S. supplies. Meanwhile, Russia is reportedly considering a grain export quota of 20 million tons for the second half of the season, nearly double last year’s level, adding to global supply considerations.
