This morning, CBoT soybean futures are trading at their highest level in almost a month after Washington and Beijing reached an agreement on the first phase of the trade deal. It can now be expected that China will import significantly more US agricultural goods.
This deal mainly boosts US soybean sales. However, traders in Singapore are urging caution, as it remains to be seen how much China will actually buy.
In the first part of the agreement, China commits to importing USD 200 billion worth of US goods and services over the next two years. The agreement is to be signed at the beginning of January. It also includes 50 billion US agricultural goods to be acquired in 2020.
In 2017, the year before the trade war between the two superpowers, China bought USD 24 billion worth of US agricultural goods.
Source
HANSA Terminhandel
