Soybean futures traded near a 10-month high on Wednesday as the market continued to draw support from the trade war truce between the US and China. Both wheat and corn ended mixed on the day.
A deal reached over the weekend will suspend triple-digit import tariffs between the two countries for 90 days, providing an opportunity for further talks. The agreement has rekindled hope for US soybean demand, with China the world’s No. 1 buyer. Soybeans were further underpinned by strength in soybean oil, and a proposal from US lawmakers this week to extend the 45Z clean fuel tax credit to 2031 from its current 2027 expiration. July beans gained 5 ¼ cents to $10.77 ¾, and November added 1 ¾ cents to $10.61 ¼.
After the nearby July contract hit a nearly 5-month low a day earlier, corn was boosted by bargain buying. However, good US planting progress continued to overhang the market as well. July corn was up 3 cents at $4.45 ½, and December slipped a ½ cent to $4.40 ½.
Short covering offered support to wheat, with July Chicago up 7 ½ cents to $5.24 ¾. and July Kansas City 11 ¼ cents higher at $5.23. However, July Minneapolis eased 3 ¾ cents to end at $5.77.
