CBoT soybean futures prices have been trading near their 18-month high since yesterday. The firm market sentiment is supported by hopes that China will resume its soybean purchases from the US now that a trade deal between the two superpowers is imminent.
At the very least, Phase 1 of the bilateral trade agreement is expected to be signed in early January. It also includes China's commitment to buy more US agricultural products. Market participants are therefore once again confident about sales of US agricultural commodities.
China's grain-growing region is threatened by the infestation of the European corn beetle larva in 2020. This could increase the need to import animal feed again.
Source
HANSA Terminhandel
