Soybean Prices Surge Amid Trade Optimism; Wheat Gains, Corn Declines

PARIS/SINGAPORE: Soybean values experienced a surge to a two-month peak on Wednesday, propelled by growing anticipation of eased tensions in the trade relationship between the United States and China. Simultaneously, wheat prices saw modest gains, while corn futures showed a decline.

The financial landscape stabilized following remarks from U.S. President Donald Trump, who indicated he had no intention of dismissing the Federal Reserve’s chair and alluded to potential reductions in tariffs on Chinese goods.

U.S. Treasury Secretary Scott Bessent commented on Tuesday, expressing his belief that the trade frictions between the U.S. and China would lessen. However, he noted that discussions with Beijing had not yet commenced and would likely be a prolonged undertaking.

The most actively traded soybean contract on the Chicago Board of Trade (CBOT) demonstrated a 0.7% increase, reaching $10.52-3/4 a bushel as of 1047 GMT. Earlier in the session, it touched $10.58, marking its highest level since February 24.

China stands as the world’s foremost importer of soybeans.

Corn prices receded by 0.2% to $4.82-1/4 a bushel, while wheat prices inched up by 0.2% to $5.51-1/2 a bushel.

Corn values faced downward pressure due to forecasts predicting minimal rainfall in the U.S. Midwest. This bolstered expectations that farmers would proceed with planting activities in the coming weeks without significant disruptions.

China’s soybean imports from the U.S. increased in March, but Brazil is poised to dominate the market.

On Tuesday, the crop monitoring service MARS, operating within the European Union, marginally adjusted its projection for the region’s soft wheat yield this year. However, it cautioned that arid conditions in the bloc’s northern regions could impede crop development.

According to a note from Argus’s Agritel consultancy, the global wheat balance remains relatively stable, but corn fundamentals appear stronger, especially in the United States, where demand continues to be robust.

Trading sources indicated that commodity funds were net sellers of CBOT corn and soymeal futures contracts on Tuesday. Conversely, these funds were net purchasers of soybean contracts and maintained a neutral stance on wheat and soyoil contracts.