US President Donald Trump softened his recent statements and moves toward China over the weekend, and the soybean market on the Chicago Board of Trade, which plummeted last Friday (10), rose slightly again this Monday (13), albeit in a very restrained manner. Relations between the two countries remain deteriorated, while the Asian nation still needs nine million tons of soybeans to meet its November-January shipments, which is expected to leave its demand focused on South America, particularly Brazil.

China's resistance and its increased tone in the face of US actions are surprising and show that the country is much more prepared for a trade dispute like the one currently unfolding than it was in 2019.

The important thing now will be to monitor how relations between the two countries will actually develop, as China is expected to continue demanding soybeans from Brazil, while still maintaining an important opportunity for the domestic market. Both available soybeans and new-crop soybeans remain at stable prices, failing to attract large new deals. Still, constant monitoring is necessary, as the chances of higher bushel prices in Chicago are limited.

This analysis is by Eduardo Vanin, soybean complex analyst and director of Agrinvest Commodities, and can be seen in full in the video above.

Source: Notícias Agrícolas