CANBERRA: Chicago soybean prices rose more than 2% on Monday after U.S. President Donald Trump said he hoped China would quadruple its soybean orders from the United States.
China is the largest soy importer in the world, but has been shunning U.S. beans for South American ones on the back of trade and diplomatic tensions. Trade talks between U.S. and Chinese officials are ongoing.
“China is worried about its shortage of soybeans,” Trump posted on Truth Social. “I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA.”
The most active soybean contract on the Chicago Board of Trade (CBOT) was up 2.1% at $10.08 a bushel at 0417 GMT, having been little changed before Trump’s post.
Chicago wheat and corn futures also gained after the post, with CBOT wheat up 0.9% at $5.19 a bushel and corn 0.3% higher at $4.06-3/4 a bushel.
However, prices of all three crops remain under pressure from plentiful global supply. Last week, wheat fell to a five-year low, soybeans to a four-month low and corn to contract lows.
Analysts polled by Reuters think the USDA will raise its U.S. corn and soybean production estimates in a monthly report due on August 12.
Northern Hemisphere wheat harvests are, meanwhile, pouring grain into the market.
Low prices appear to have stimulated some demand for US exports. U.S. weekly export sales of soybeans, corn and wheat were higher than expected last week, and the USDA has reported a series of flash sales of corn in recent days.
Speculators are still bearish, however. Non-commercial traders trimmed their net short position in CBOT corn futures in the week to Aug. 5 but expanded their net shorts in wheat and soybeans, regulatory data showed.
Large short positions make the markets vulnerable to bouts of short covering that accelerate upward price moves.
