FX.co ★ Soybeans Rise to 2-Month High

Soybean futures in the United States surged to $11.15 per bushel in February, marking the highest level in two months, driven by increased interest from China in U.S. soybean exports. President Donald Trump announced that China intends to increase its purchases of American soybeans to 20 million tonnes this year, with a further increase to 25 million tonnes projected for the following year. This development is seen as an effort by Trump to regain support from American farmers after the Chinese market turned away from U.S. grains amidst the trade war between the two nations. The commitment may result in Chinese buyers paying premiums on 8 million tonnes of these orders compared to more cost-effective South American options, notably due to Brazil's robust harvest. Ample supply from Brazil, which holds the position as the world's leading producer, has caused U.S. premiums over CBOT contracts to nearly double compared to Brazilian levels.