Chicago | Reuters—Soybean prices rose to a two-month high on Wednesday, underpinned by expectations of a de-escalation in the U.S.-China trade conflict, while wheat and corn futures ticked lower.
Financial markets calmed after U.S. President Donald Trump said he had no plans to fire the head of the Federal Reserve and hinted at lower China tariffs.
U.S. Treasury Secretary Scott Bessent also said on Tuesday he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be “a slog”.
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The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled 4-1/4 cents higher at $10.50-1/4 a bushel, after reaching its highest point since February 24 earlier in the session.
China is by far the world’s biggest soybean importer.
Corn Cv1 fell 4 cents to finish at $4.79-1/4 a bushel and wheat Wv1 ended down 6-3/4 cents to $5.43-1/2 a bushel.
“Some of the bullish undertone behind soybeans is related to easing concerns over the China/U.S. tariff spat, although if any deal gets done, China is already done buying U.S. soybeans,” said Terry Reilly, senior agricultural strategist at Marex.
He added that soybean futures received some support from technical buying.
Corn prices were curbed by forecasts for limited rainfall in the U.S. Midwest, boosting expectations that farmers will be able to plant at a faster pace without major disruptions in the coming weeks, according to analysts.
Forecaster Commodity Weather Group predicted the Midwest would be drier in the next 16-30 days.
Meanwhile, wheat felt pressure from a slowdown in global wheat tender announcements, said Reilly.
Commodity Weather Group said showers in the U.S. Plains would limit winter wheat stress.
Forecaster Vaisala noted warm and dry weather over the last week had aided fieldwork in the Black Sea, although showers in parts of the region over the next week would improve soil moisture for its winter wheat.
—Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris
