FX.co ★ Soybeans Ease From 3-Month High

Soybean futures fell to $10.50 per bushel after having peaked at a three-month high of $10.66 on May 12, as the impetus from the temporary US-China trade agreement started to diminish. Investors exercised caution, reevaluating the potential impact of the deal on improving trade relations, even as they processed an encouraging USDA supply and demand report. On Monday, the US announced a 90-day temporary reduction in tariffs with China, its primary soybean importer, lowering tariffs to 30% and 10%, respectively. Meanwhile, Treasury Secretary Scott Bessent indicated plans to meet with Chinese officials in the ensuing weeks to initiate discussions on a more comprehensive trade agreement. From a data perspective, the USDA predicted U.S. soybean ending stocks for 2025–26 at 295 million bushels, significantly lower than analysts' expectations of 362 million. For 2024–25, ending stocks were adjusted down to 350 million bushels, which falls short of both April’s forecast of 375 million and the consensus estimate of 369 million.