Soybeans reach two-week high on expectations of chinese demand

Soybean futures in Chicago climbed to their highest level in two weeks as market participants assessed the outlook for U.S. soybean demand from China, the world’s largest importer of the oilseed. Prices extended gains for a third consecutive trading session.

China typically increases purchases of Brazilian soybeans early in the year following the harvest, but traders are now focusing on the potential for new buying commitments from the United States. Interest in U.S. supplies has strengthened following the agricultural trade agreement reached between Washington and Beijing in May.

The bulk of U.S. soybean exports to China usually takes place between October and February, with forward sales for the new crop often emerging by this time of year. However, sales of the 2026/27 U.S. soybean crop remain at zero so far. Despite this, market sources indicate that Chinese importers have already been making inquiries about future U.S. supplies.

Last month, the United States announced that China had agreed to purchase at least $17 billion worth of U.S. agricultural products annually through 2028. Earlier this year, China also fulfilled a previous commitment to buy 12 million metric tons of U.S. soybeans.

Grain markets also received support from developments in Europe. France’s Ministry of Agriculture reduced its estimate for corn plantings to 1.31 million hectares from a previous forecast of 1.44 million hectares, a decline of 19% compared with last year. Additional concerns about hot weather and its potential impact on French corn yields further boosted prices. As a result, Chicago soybean futures rose 0.7% to $11.55 per bushel, while Paris corn futures gained 2.5% to €215 per metric ton.

Tags: China, Brazil, prices, soybean, USA