CBoT soybean futures prices have been rising for five consecutive weeks on expectations that China will soon buy more US beans. There is currently some profit-taking, which is pushing prices into the red.
On January 15, US President Donald Trump and the Vice President of China plan to sign the first part of a bilateral trade agreement in Washington, in which Beijing commits to buying significantly more US agricultural goods. However, more details are not yet known.
In 2019, CBoT soybean futures prices rose by 6.8%, wheat prices rose by 11% and corn prices by 3.4%.
In order to prevent dependence on US agricultural goods from becoming too great, China has also reached agreements with other export surplus regions of the world to facilitate trade relations. Border formalities with Kazakhstan and Russia have reportedly been eased since the beginning of the year, and Ukraine could also benefit from this.
Source
HANSA Terminhandel
