Chicago soybeans set for best weekly gain in 10 on trade optimism

BEIJING: Chicago soybean futures retreated on Friday from a one-month high as crude oil prices dropped, but remained on track for their biggest weekly gain in 10 weeks on hopes of renewed trade talks with top buyer China.

As of 0227 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) edged 0.07% lower to $10.44 per bushel, but held near its recent peak.

Soybean and corn futures had climbed in the previous session, tracking stronger crude oil prices after fresh US sanctions on Russia’s top two oil producers heightened supply concerns.

The rally cooled on Friday as US crude futures eased. Soybeans and corn often move in tandem with crude due to their use in biodiesel production.

Markets are focused on an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea, with Trump reiterating that soybean purchases will be a major point of discussion.

“The possibility of a trade deal with China has kept the market optimistic. We expect current volatility in the soybean market to persist. A definitive resolution to these issues is unlikely in the near term,” said Ishan Bhanu, lead agricultural commodities analyst at Kpler.

Chinese buyers have shunned US new-crop supplies in favour of South American cargoes. A trade deal could help US farmers avert steep losses, but the window for fresh purchases is narrowing.

“If a deal is reached in early November, China could secure shipments for the second half of December or January. Beyond February, however, Brazil’s new crop will enter the market,” Bhanu said.

Corn dipped 0.23% to $4.27 a bushel, while wheat added 0.1% to $5.13-1/2 a bushel. Both remained poised for a second consecutive weekly gain.

The market continues to watch for clearer indications of US corn crop size, amid anecdotal reports from farmers of underwhelming yields.

On the global front, the International Grains Council has raised its forecast for 2025/26 global wheat production with the crop outlook upgraded for Russia, the United States and Argentina.