Soybeans Reach Two-Month Peak Amid Trade Optimism

In Singapore, soybean prices experienced an upswing on Wednesday, attaining a two-month high. This surge was primarily driven by growing anticipation of a potential easing of trade tensions between the United States and China.

Conversely, wheat prices declined due to projections of increased European output, while corn futures also saw a decrease.

Across Asian markets, stock values rebounded, buoyed by remarks from US President Donald Trump indicating no intention to dismiss the Federal Reserve head and alluding to possible reductions in tariffs on Chinese goods.

US Treasury Secretary Scott Bessent conveyed his optimism on Tuesday regarding a de-escalation in US-China trade disputes. However, he noted that negotiations with Beijing have not yet commenced and are expected to be protracted.

The most active soybean contract on the Chicago Board of Trade (CBOT) increased by 0.8%, reaching $10.54-1/4 per bushel as of 0246 GMT. Earlier in the session, it peaked at $10.58, marking the highest level since February 24. Corn prices decreased by 0.2% to $4.82-1/2 per bushel, while wheat prices fell by 0.4% to $5.48 per bushel. It’s noteworthy that China stands as the world’s foremost importer of soybeans.

Corn and Wheat Prices Affected by Weather and Forecasts

The upward movement in corn prices faced constraints due to forecasts indicating limited rainfall in the US Midwest. This has heightened expectations that farmers will proceed with planting activities without significant disruptions in the near term.

On Tuesday, the European Union’s crop monitoring service, MARS, marginally adjusted its forecast upward for the region’s soft wheat yield this year. However, it cautioned that dry conditions in the northern part of the bloc could impede crop development.

According to traders, commodity funds were net sellers of CBOT corn and soymeal futures contracts on Tuesday. Conversely, these funds were net buyers of soybean contracts and remained neutral on wheat and soyoil contracts.