Chicago | Reuters—U.S. soybean futures rallied to a two-week high on Monday after U.S. President Donald Trump said he hoped China would quadruple its soybean buying from the United States and as forecasts of hot, dry U.S. weather sparked some concern about yields.
Corn and wheat futures followed soybeans higher as traders expected that more Chinese purchases of U.S. farm products could be part of any eventual U.S.-China trade deal, although both markets remain anchored by large global supplies.
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China is the world’s largest soy importer but has so far avoided purchases from the upcoming U.S. harvest as trade tensions between Washington and Beijing have flared.
“China is worried about its shortage of soybeans,” Trump posted on Truth Social. “I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA.”
Trump on Monday also signed an executive order extending a tariff truce with China by another 90 days with only hours to go before U.S. tariffs on Chinese goods were due to snap back to triple-digit rates.
Trump’s social media post offered a lift to markets that have been weighed down by expectations of massive U.S. soybean and corn harvests following largely favourable Midwest weather this summer.
“I think it’s a combination of the Trump tweet and the forecast. There is concern that we’re going to get dry (weather) between now and the end of the month and into September,” said Ted Seifried, chief market strategist for Zaner Ag Hedge.
Chicago Board of Trade November soybeans SX25 settled 23-3/4 cents higher at $10.11-1/4 a bushel following the contract’s strongest percentage gains in two months.
December corn CZ25 was up 2-1/4 cents at $4.07-3/4 a bushel while CBOT September wheat WU25 rose 1/2 cent to $5.15 a bushel.
Traders were also squaring positions ahead of Tuesday’s monthly U.S. Department of Agriculture crop supply and demand report, which is expected to show larger U.S. corn and soy crops and larger supplies in the coming year.
—Additional reporting by Michael Hogan in Hamburg and Peter Hobson in Canberra.
