FX.co ★ Soybeans Surge to Over 9-Month High

Soybean futures surged toward $10.80 per bushel, marking their highest point since July 2024. This rise is attributed to a proposal seeking to extend the US biofuel tax credit until December 2031, which is anticipated to foster increased domestic demand for soybeans. Further driving this momentum is renewed optimism regarding a potential temporary US-China tariff truce. President Trump indicated on Tuesday the possibility of direct discussions with Chinese President Xi Jinping to finalize a trade agreement. Despite this optimism, agribusiness consultancy AgResource cautioned on Wednesday that US soybean exports could potentially decline by 20%, and farm gate prices—the average prices received by farmers—might suffer a significant drop if both nations fail to reach a consensus. Additionally, the USDA adjusted its forecast for soybean ending stocks on Monday, predicting 295 million bushels for 2025–26, considerably below the 362 million anticipated by analysts. For 2024–25, stock projections were reduced to 350 million bushels from April's estimate of 375 million.