Chicago soybean futures rose on Friday, climbing to a two-and-a-half-month high as renewed optimism over continued Chinese demand for U.S. supplies supported prices.
The most-active soybean contract on the Chicago Board of Trade gained 0.2% to $11.39-1/2 a bushel by 0317 GMT, taking weekly gains to 2.2%. Traders said soybean prices have found strong support from a significant rise in U.S. export sales to mainland China.
Market sentiment was also lifted by reports suggesting that U.S. President Donald Trump and Chinese President Xi Jinping could extend their countries’ trade truce for up to a year following a meeting in early April. Given the shifting U.S.-China trade dynamics, traders remain cautious about holding short positions ahead of a long U.S. holiday weekend.
The U.S. Department of Agriculture confirmed new export sales of 264,000 metric tons of U.S. soybeans to China earlier this week. However, competition from South America continues to weigh on the broader outlook. Brazil’s crop agency Conab raised its soybean crop estimate to a record 177.98 million metric tons, while the USDA increased its projection to 180 million tons.
Meanwhile, CBOT wheat was flat at $5.52-1/5 a bushel after rising 4.3% for the week, supported by short-covering and chart-based buying. Corn gained 0.1% to $4.31-1/2 a bushel, underpinned by stronger-than-expected weekly U.S. export sales data.
