Soybean prices in Chicago strengthened on Wednesday, hovering near the two-week high achieved the previous day. This increase followed the announcement from U.S. and Chinese officials regarding a framework aimed at revitalizing their trade truce. The agreement has generated hopes among traders that tensions may ease, although some caution was observed in the market while awaiting further developments.
As of early morning trading, the most active soybean contract on the Chicago Board of Trade (CBOT) rose by 0.1% to $10.59 per bushel, maintaining levels close to Tuesday’s high, which marked the strongest prices since May 28. Wheat also saw a slight increase, rising by 0.3% to $5.36 per bushel, while corn prices matched this gain, reaching $4.40-1/4 per bushel. The discussions between the U.S. and China, which concluded after two days of negotiations in London, resulted in an agreement to ease retaliatory tariffs and address China’s export restrictions on rare-earth minerals and magnets.
U.S. Commerce Secretary Howard Lutnick confirmed that the two sides would present this framework to their respective leaders for approval. Notably, China is recognized as the world’s largest importer of soybeans, whereas the United States ranks as the second-largest exporter. Wheat prices, however, were pressured during the previous two trading sessions due to improved crop ratings from the U.S. Department of Agriculture, which surpassed analysts’ forecasts.
Additionally, Russia’s grain harvest is expected to increase to 135 million metric tons by 2025, up from last year’s 130 million tons, according to Deputy Prime Minister Dmitry Patrushev. In trade activity, commodity funds showed a tendency to buy CBOT soyoil futures contracts on Tuesday, while remaining neutral in soybeans and soymeal. They were net sellers of wheat and corn futures, indicating varied investor sentiment across different commodities.