Chicago | Reuters—Chicago Board of Trade soybean futures set a nearly 10-month high on Wednesday as the truce in the U.S.-China tariff dispute and a proposal to extend a U.S. biofuel tax credit boosted hopes for demand.
Corn futures were mixed, while wheat rebounded from a nearly five-year low on Tuesday.
Soybeans Sv1 advanced for a fifth consecutive session, supported this week by the 90-day pause in sky-high tariffs that Washington and Beijing had imposed on each other’s goods.
Traders watched for signs that China, the world’s biggest soybean importer, may buy U.S. crops as part of trade negotiations. However, they remained uncertain about what will happen when the pause expires just before farmers harvest soy and corn crops.
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U.S. soybean exports may drop 20 per cent and the prices paid to farmers will plunge without a resolution to the trade dispute, consultancy AgResource said.
China previously did not fulfil commitments to buy American agricultural products under a Phase One trade deal with Trump during his first term.
“The trade is hopeful that China will be willing to return to the 2020 Phase One agreement,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
Most-active CBOT soybeans Sv1 finished up 5-1/4 cents at $10.77-3/4 per bushel. The most-active contract earlier reached $10.82, the highest since July on a continuation chart.
The U.S. Department of Agriculture on Monday surprised traders by projecting smaller-than-expected soy ending stocks by Sept. 1, 2026.
Also on Monday, U.S. House lawmakers unveiled a proposal to extend the clean fuel tax credit 45Z until December 31, 2031, which could sustain demand for soyoil as a feedstock for the expanding renewable diesel industry.
The extension would avert a potential “demand cliff” following the 2027 expiration of the current credit, said Andrew Whitelaw, agricultural consultant at Episode 3.
CBOT wheat Wv1ended up 7-1/2 cents at $5.24-3/4 per bushel while corn Cv1 closed 3 cents higher at $4.45-1/2 per bushel.
On Thursday, traders will review weekly U.S. agricultural export sales data and a National Oilseed Processors Association report that analysts expect will show that U.S. soybean crushings slowed in April but still represented the highest-ever level for that month.
—Additional reporting by Ella Cao and Lewis Jackson in Beijing and Gus Trompiz in Paris
