Chicago soybean futures gained ground Wednesday, supported by a weakening U.S. dollar and reports that China might reopen trade negotiations with the U.S. However, market optimism was tempered by record South American harvests and China’s ongoing tariffs on American beans, which have crushed export demand.
The most-active CBOT soybean contract Sv1 rose 2.75 cents to 10.38¾perbushel∗∗,while∗∗Julycorn∗Cv1∗added2.25centsto10.38¾perbushel∗∗,while∗∗Julycorn∗Cv1∗added2.25centsto4.91¾ and July wheat Wv1 gained 5 cents to $5.61 per bushel. The rally was partly fueled by the dollar index (.DXY) sliding toward three-year lows, making U.S. crops more competitive globally.
Trade War Priced In, But Hope Lingers
China—the top importer of U.S. soybeans—has imposed retaliatory tariffs, effectively shutting down American bean shipments. Yet, analysts noted that the market has largely absorbed this bearish pressure. A Bloomberg report suggesting Beijing’s openness to talks provided a brief lift.
“This sparks optimism that negotiations could resume sooner rather than later,” said Randy Place of Hightower Report.
Corn and Wheat Find Support in Weather Woes
Excessive rains and flooding across the U.S. Midwest have delayed corn planting, tightening near-term supply expectations. “Farmers need an early start to hit acreage targets, but weather is disrupting plans,” Place added.
Meanwhile, spring wheat in the northern Plains faced waterlogging, offsetting forecasts of beneficial rains for the drought-stressed hard red winter wheat crop in the central U.S.
Outlook:
While the dollar and trade talk hopes offered short-term relief, soybean prices remain vulnerable to China’s import freeze and South America’s booming exports. Corn and wheat may see further volatility as planting delays and global demand shifts unfold.