Soybean prices rise in Chicago after Trump announces meeting with Xi Jinping

There was a real turnaround in grain prices traded on the Chicago Board of Trade this Wednesday (1st). Quotes, which had been operating in negative territory an hour before the end of the session, rose at the close after U.S. President Donald Trump signaled that he may negotiate a trade agreement with China.

The rally was led by soybeans. November contracts rose 1.12% to $10.13 per bushel.

Soybeans, which had been depreciating in the international market mainly due to the absence of Chinese purchases of the U.S. product, gained momentum today after Trump announced on his social media that he would meet with Chinese President Xi Jinping.

“I will meet with President Xi of China in four weeks, and soybeans will be one of the main topics of discussion,” Trump wrote.

In the same post, the U.S. president said that American soybean producers are being harmed by the lack of Chinese purchases.

Ênio Fernandes, an analyst at Terra Agronegócios, noted that the Asian giant has not directed its demand to the U.S. since May. However, he warned that at some point China would have to resume negotiations with the Americans, given that “Brazil has already sold most of its production and Argentina took advantage of the suspension of export taxes to sell everything it could.”

Corn
Like soybeans, corn also changed direction and rose on the Chicago Board of Trade. The December delivery contract posted a 0.24% increase today, closing at $4.1650 per bushel.

Wheat
Wheat also gained value on the exchange, following the movement of soybeans. December contracts rose 0.25% to $5.0925 per bushel.

Source: Globo Rural

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