Soybean futures jumped on signals that China is stepping up its buying of oilseed, offering hope for US farmers after purchases appeared to have stalled.
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Prices in Chicago rose as much as 3.2 per cent on Monday, hitting a fresh 17-month high, after US President Donald Trump said China is in the process of buying soybeans.
“They’ll be doing a lot of soybean purchases,” he told reporters aboard Air Force One on Friday, adding that those purchases could start before spring.
Brokerage AgResource Co said importers in China have bought seven to 10 cargoes from the US, some for shipping in January and others set for June or later.
Soybeans have been a flashpoint in trade tensions between the US and China, the world’s largest importer of the oilseed. China has held off buying US soybeans for much of the season, squeezing American growers and giving Beijing a key bargaining chip during tariff negotiations.
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The Trump administration said last month Beijing agreed to buy at least 12 million tons of US soybeans this season – a deal that is considered crucial for American farmers struggling with inflation and high input costs.
However, the latest US Department of Agriculture export numbers until November 12 showed that so far only 232,000 tons were destined for China out of a total 1.2 million in soybean sales.