CBoT soybean prices are up 2% this morning as Washington and Beijing agree on some controversial trade issues. This also suggests that US soybean supplies to China will run smoothly again.
The United States and China have been able to agree on some kind of agreement and even if they do not like each other, they are both too big to avoid each other.
The trade dispute then pauses, after the world's two largest economies agreed to give up on the threat of punitive tariffs. Now other trade issues are on the negotiating table.
In April, China threatened to impose a 25% penalty on US soybean imports as the US planned to impose a number of Chinese products.
However, agricultural traders say the upside potential for soybean futures is limited as the Brazilian soybean crop is now on the market and prices are lower than US soybeans.
Last week, orders for nearly one million tonnes of US soybeans were canceled, as Brazil pushes to market with low prices.
Text: HANSAFutures Trading GmbH / / Graphic: Saxo-Trader 
