FX.co ★ Soybean Futures Climb to 2-Month High

Soybean futures surged nearly 3% on Wednesday, reaching $10.95 per bushel, marking their highest level in two months. This rally followed statements by US President Donald Trump indicating that China intends to increase its purchases of US soybeans to 20 million tons this season and 25 million tons in the forthcoming season. By late January, China had already acquired approximately 12 million tons, fulfilling a commitment made to the US after the trade truce established in late October. As the leading purchaser of US soybeans globally, China's buying behavior is closely monitored for indications of increased demand, especially after its previous withdrawal from the market amidst the trade war tensions. Adding to the positive sentiment, traders responded favorably to the revised US Treasury guidelines on biofuel tax credits, which offered much-needed clarity to biofuel producers. Despite these optimistic developments, the abundant global supply continues to exert pressure on price increases. Market participants are now keenly anticipating next Tuesday's USDA crop forecasts for new insights and direction.