Traders in CBoT soybean futures expect the "Phase 1" deal between the US and China to be finalized this week. The Chinese Vice President is traveling to Washington to sign the contract.
However, the contract has not yet been negotiated in detail. Steven Mnuchin, the US Trade Representative, said yesterday that China will buy USD 40-50 billion worth of US agricultural goods over the next two years, as agreed on December 13.
Many market participants doubt this.
The US produced 3.558 billion bushels of soybeans in 2019 with an average yield of 47.4 bushels per acre. This was the USDA's estimate on Friday. The estimate is thus higher than the expectations of market participants.
Large fund companies subsequently reduced their exposure to long positions in CBoT agricultural futures.
However, the contract has not yet been negotiated in detail. Steven Mnuchin, the US Trade Representative, said yesterday that China will buy USD 40-50 billion worth of US agricultural goods over the next two years, as agreed on December 13.
Many market participants doubt this.
The US produced 3.558 billion bushels of soybeans in 2019 with an average yield of 47.4 bushels per acre. This was the USDA's estimate on Friday. The estimate is thus higher than the expectations of market participants.
Large fund companies subsequently reduced their exposure to long positions in CBoT agricultural futures.
Source
HANSA Terminhandel
