Soybeans lead U.S. grains higher on optimism for trade revival

[Soybean]
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U.S. grain futures scored strong gains across the board Monday after Treasury Secretary Bessent said over the weekend that he expects China to resume substantial purchases of U.S. soybeans, a positive signal ahead of trade talks planned later this week between President Trump and China's President Xi.

"Soybean farmers are going to be extremely happy with this deal for this year and the coming years," Bessent said.

The latest weekly data from the U.S. Department of Agriculture showed soy shipments totaling ~1.06 million tons, down by a third from the previous week with nothing loaded for China.

Soybeans (S_1:COM [https://seekingalpha.com/symbol/S_1:COM]) for November delivery settled +2.4% at $10.67 1/4 per bushel on the Chicago Board of Trade after rising as high as 2.8% to their highest level since July 2024, while wheat (W_1:COM [https://seekingalpha.com/symbol/W_1:COM]) for December delivery ended +2.6% to $5.26 per bushel, and corn (C_1:COM [https://seekingalpha.com/symbol/C_1:COM]) for December delivery finished +1.3% to $4.28 3/4 per bushel.

Some analysts are bullish on China's demand for late 2025 and into next year, before Brazil starts harvesting what is expected to be another record harvest, whileothers see limited room for new U.S. sales in the months ahead.

"Because China has bought a lot of soybeans out of Brazil and Argentina, its near-term need is modest," Cornucopia Agri Analytics strategist Tobin Gorey said in a note. "But where we should see it is a pick-up in forward sales at some point. The issue for the market now boils down to timing, rather than size."

ETFs: (NYSEARCA:SOYB [https://seekingalpha.com/symbol/SOYB]), (NYSEARCA:WEAT [https://seekingalpha.com/symbol/WEAT]), (NYSEARCA:CORN [https://seekingalpha.com/symbol/CORN]), (DBA [https://seekingalpha.com/symbol/DBA]), (MOO [https://seekingalpha.com/symbol/MOO])

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