U.S. soybean futures gapped sharply higher mid-morning — at one point up nearly 50 cents — after President Trump posted that he had completed a lengthy call with China’s President Xi.
The two leaders are looking for areas of common ground ahead of Trump’s planned trip to Beijing in April. Among the topics discussed, Trump said he asked Xi to increase China’s soybean purchases this season to 20 mmt, up from the 12 mmt in the original agreement, on top of the 25 mmt already slated for next year.
That potential extra 8 mmt of demand was not factored into the market. It represents roughly 294 million bushels of additional soybean sales to China that are not currently reflected on the balance sheet.
Meanwhile, the cattle market also reacted, with speculative money stepping into the trade and adding momentum to the move across the livestock complex.
Wednesday Market Wrap Up with Arlan Suderman at StoneX…
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