Thursday , September 24 2020

Soybeans advance as US-China trade talks move forward


Soybean futures climbed for the fourth straight day as officials signalled optimism that the US and China will reach a trade deal.
China was processing applications for tariff waivers on imports of US soy, a procedural step that could set the stage for a broader agreement. The Asian nation is the top consumer of each commodity, and US shipments have been impeded by the tariffs.
January soybeans rose as much as 1.1%, capping the longest streak of gains since September. February lean hog futures jumped as much as 3.7% before erasing those gains, with the biggest US herd since 1943 still anchoring prices.
The deadly African Swine Fever virus that has killed tens of millions of hogs in China and elsewhere in Asia prompted an urgent need for meat imports. Waiving tariffs would open the door for supplies to flow more freely.
“I think a trade deal is imminent and it’s going to get done,” Dennis Smith, senior account executive at Archer Financial Services Inc in Chicago.
The countries are working towards a deal before a December 15 deadline for more tariffs, and US National Security Adviser Robert O’Brien said that Washington is close to reaching a phase-one agreement.
“It remains to be seen how quickly soybean imports from the US recover if a ‘Phase 1 trade deal’ is agreed,” Carsten Fritsch, an analyst at Commerzbank AG, said in a report.
Chicago soybeans for January delivery settled 0.6% higher at $8.895 a bushel and February hogs about steady at 67.550 cents per pound.
Even with the recent rebound, soybean prices remain slightly lower for the year. Large South American harvests loom in the coming months, boosting competition for American supplies. The US Department of Agriculture will update its global crop forecasts next week, and analysts expect slightly bigger outlooks for both Brazil and Argentina.

About Admin

Check Also

China vows carbon neutrality by 2060

Bloomberg China aims to be carbon neutral by 2060, tightening its target to cut greenhouse-gases, ...

Leave a Reply

Your email address will not be published. Required fields are marked *