Chicago | Reuters – Chicago Board of Trade soybean futures hit a two-month high on Wednesday following comments by U.S. President Donald Trump about China buying more U.S. soybeans, traders said.
In a post on his Truth Social platform, Trump said China is “lifting the Soybean count to 20 Million Tons for the current season (They have committed to 25 Million Tons for next season!”
By late January, China had purchased roughly 12 million metric tons of U.S. soybeans, fulfilling a U.S.-stated pledge to purchase that volume by the end of February after a late-October trade truce spurred buying.
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There were good gains for the Chicago soy complex during the week ended Feb. 4, due to positive news that Wednesday.
China, by far the biggest buyer of U.S. soybeans, had exited the U.S. market during the prolonged tit-for-tat trade war between the two countries. Market players closely monitor China to watch for signs of fresh demand.
The most-active soybean contract Sv1settled 26-1/2 cents higher at $10.92-3/4 a bushel.
Soyoil futures continued a day-earlier rally supported by updated U.S. government guidance on tax credits for biofuel, a major source of demand for soyoil.
Soybean by-product soyoil BOv1 rose 1.17 cent to close at 55.66 cents per pound.
The U.S. Treasury Department on Tuesday released updated guidance on biofuel tax credits, a move welcomed by traders as giving clarity to biofuel producers.
CBOT corn Cv1 closed 1 cent higher at $4.29-1/2 per bushel amid a flurry of technical trading, while CBOT wheat Wv1 closed 2 cents lower at $5.26-3/4 per bushel.
Ample global supply continued to cap grain prices as traders started to look ahead to world crop forecasts from the U.S. Department of Agriculture next Tuesday for fresh direction.
The dollar rose on Wednesday, making U.S. crops more expensive internationally.
Easing concerns over crop winterkill in Ukraine and Russia following a prolonged period of severe cold in the Black Sea region has added pressure to the wheat market.
-Additional reporting by Gus Trompiz in Paris and Daphne Zhang and Lewis Jackson in Beijing
