Chicago Agriculture Commodities Finished Higher
$SOY, $WEAT, $CORN
Chicago Board of Trade (CBOT) agriculture commodities finished higher Wednesday with the hope that China will import more US agriculture products.
The most active Corn contract for July delivery rose 3.75c, or 0.93% to settle at 4.085 bu.
July Wheat delivery went up 9.5c, or 1.82% to close at 5.31 bu.
July Soybean were up 8.75c, or 0.85% to settle at 10.3925 bu.
CBOT Soybean prices have risen more than 40c/bu after the United States and China vowed last Saturday not to launch a trade war against each other.
Both countries have pledged to meaningfully increase US agriculture products exports to China, which is Top buyer of US Soybean.
Meanwhile, the recent rainfall in the US Midwest have further delayed the planting of Corn, pushing its futures higher.
Wheat prices also climbed sharply on threatening dryness in Canada, Australia and the Black Sea, all Key Wheat producing areas.
Iowa Soybean Association (ISA) leaders are feeling relieved that trade tensions between China and the United States have eased and soybean demand could escalate, ISA’s official website reported on Wednesday.
Home to a large portion of America’s pork and grain products, Iowa is the 2nd largest agriculture state after California. Its annual outputs of Soybean ranks #2, only after the State of Illinois.
Last week, China and US had economic and trade consultations in Washington.
According to a joint statement issued on Saturday, the two sides agreed to take effective measures to substantially decrease the US trade deficit in goods with China, and China will significantly increase its purchase of US products, especially agricultural and energy products.
“It makes me more optimistic that I will sell this year’s soybean crop at a profit,” said ISA President Bill Shipley. “Hopefully, the Chinese buyer will increase what they intended to buy and prices will increase even more.”
China is the world’s biggest buyer of US Soybeans, having imported a total of 27.5-M tonnes of them in MY 2017, according to the US Department of Agriculture. In money terms, it represents an approximately $14-B business annually.
ISA CEO Kirk Leeds said he is encouraged by the efforts made by The Trump Administration and China to work to resolve trade issues.
“Anything we can do to eliminate political posturing and rhetoric from business transactions is a good thing for soybean farmers and buyers,” Mr. Leeds said, “This is a step forward in the right direction; China and the US need each other as trading partners.”