Soybean futures posted good gains on Monday, rising on renewed US-China trade optimism. Corn edged a bit higher on the day, while wheat was mixed.
US President Donald Trump said over the weekend that he believes China and the US will reach a deal that will see China return as a buyer of American beans. Amid trade tensions between the two countries, China has pivoted away from the US and instead sourced its soybean needs from Brazil, leaving American farmers without their largest market. A Reuters report today said China imported no soybeans from the US in September, the first time since November 2018 that shipments fell to zero. Trump is expected to meet and discuss soybeans with his Chinese counterpart Xi Jinping at the APEC Summit in South Korea later this month. November beans gained 12 ¼ cents to $10.31 ¾, and January was up 13 ¼ cents at $10.50.
Corn followed soybeans higher, although the advances were blunted by heavy supplies and worries over trade with Colombia, a significant buyer of American corn. December was up ¾ of a cent at $4.23 ¼, and March was a ½ cent higher at $4.37.
The gains in soybeans also supported wheat, but large global supplies remained a bearish influence. A timely storm system in the latter part of this week is expected to bring beneficial precipitation to newly planted winter wheat crops in parts of the US southern Plains. December Chicago wheat was up a penny at $5.04 ¾, and December Kansas City lost 1 ½ cents at $4.90. December Hard Red Spring was up 1 ¾ cents at $5.33, and December Minneapolis was steady at $5.48 ½.
