Soybeans extend gains on signs of US-China tariff de-escalation
Reuters: Chicago soybeans rose for a fifth session on Friday, reaching their highest level since early-February, as news that China has exempted some U.S. goods from its tariffs bolstered expectations of a de-escalation in trade tensions. Corn and wheat also rose, recovering from two-week lows linked to improving crop weather.
The most-active soybean contract on the Chicago Board of Trade were up 0.4% at $10.66 a bushel at 1043 GMT, after earlier touching its highest since February 5 at $10.67-1/2. "Potential progress on a U.S.-China trade deal remains a key focus," CM Navigator analyst Donatas Jankauskas said. China, the world's biggest soybean importer, exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified. U.S. President Donald Trump, meanwhile, said in an interview with Time magazine published on Friday that Chinese counterpart Xi Jinping had called him and that their governments were in active trade talks.
U.S. soybeans have not been mentioned so far in Chinese tariff exemptions and China is currently in a period where it mainly buys freshly-harvested Brazilian soybeans. However, moves to defuse trade tensions are seen as positive for U.S. exports beyond this season.
Sentiment in the U.S. soybean market has also been boosted by brisk demand from Europe and a report that Japan is considering an increase in soybean imports from the United States as part of tariff negotiations. Price gains for soybeans were nonetheless curbed by a recovery in the dollar and caution over the U.S.-China trade talks, which Beijing has denied. CBOT wheat added 0.8% to $5.48-3/4 a bushel, and CBOT corn rose 0.6% to $4.87 a bushel. Wheat prices remained pressured by tepid international demand and by rain that has brought relief to crops in dry parts of the U.S. Plains, northern Europe and southern Russia.
The European Commission on Thursday cut slightly its production forecast for the European Union's main wheat crop in 2025/26, but increased its stocks outlook as it saw more supplies left over from this season than previously anticipated.
Prices at 1043 GMT Last Change Pct move CBOT wheat 548.75 4.25 0.78 CBOT corn 487.00 3.00 0.62 CBOT soy 1066.00 4.00 0.38 Paris wheat 211.75 2.25 1.07 Paris maize 204.50 1.75 0.86 Paris rapeseed 523.00 4.50 0.87 WTI crude oil 62.25 -0.54 -0.86 Euro/dlr 1.14 0.00 -0.31 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton
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