FX.co ★ Soybeans Hit Two-Week High

Soybean futures rose above $11.30 per bushel, reaching a two-week high on signs of renewed Chinese import demand, though favorable US crop weather capped further gains. Market sources indicated that Chinese buyers are seeking to secure US cargoes for fourth-quarter shipment, but traders noted that no definitive deals have been concluded so far.

Trading desks have been watching Chinese purchasing behavior closely since Beijing’s May announcement that it would buy $17 billion of US agricultural products annually, in addition to its existing commitment to import 25 million metric tons of soybeans.

At the same time, widespread rainfall and warm temperatures across the US Midwest over the past week have generally supported crop development, reinforcing expectations of ample global supplies. The USDA rated 66% of the US soybean crop in good-to-excellent condition, up one percentage point from the previous week.

A sharp drop in crude oil prices, following progress toward a preliminary US–Iran peace agreement, exerted additional downward pressure on grain and oilseed markets.