Soybean futures climb on US-China trade optimism; wheat and corn fall
BEIJING: Chicago soybean futures rose for a third session on Monday, supported by positive developments in US-China trade negotiations over the weekend in Switzerland.
Talks concluded on Sunday with US officials touting a 'deal' to reduce the US trade deficit, while Chinese officials spoke of reaching an 'important consensus' and the launch of a new economic dialogue forum.
The most-active CBOT soybean contract edged up 0.24% to $10.54 a bushel as of 0212 GMT.
Soybeans are the hardest-hit crop in the US-China trade standoff, as China - the world's top soy importer - continues to shift more purchases to top global producer Brazil and reduce reliance on the United States.
In Brazil, farmers are poised to expand soybean acreage by around 500,000 hectares in the 2025/26 season starting in September, according to Andre Pessoa, president of agribusiness consultancy Agroconsult.
Meanwhile, wheat and corn futures lost ground.
Wheat slipped 0.91% to $5.17 a bushel, lingering near a nine-month low.
Prices were weighed down by weak exports and favourable weather across the US Plains.
Corn dipped 0.22% to $4.49 per bushel, weighed by ideal planting and growing weather in the US corn belt.
Pakistan makes large US soybean purchase as tensions with India rise
The upcoming Brazilian corn harvest is also expected to pull global demand away from US corn in the coming weeks.
Traders are positioning ahead of the United States Department of Agriculture's report on Monday, which will provide the first 2025/26 supply and demand estimates. US soybean supplies are forecast to hold steady year-on-year, while global stocks are set to rise.
Corn ending stocks for 2025/26 in the US are expected to jump nearly 40% on the year due to a massive acreage. Global wheat stocks for 2025/26 are projected to remain largely unchanged from 2024/25.
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