Truce between China and US rekindles optimism in soybeans

The partial truce between China and the United States has reignited optimism in global markets and brought relief to the agribusiness sector. During the meeting between Donald Trump and Xi Jinping at the APEC Summit in South Korea, both countries signaled a diplomatic rapprochement, with new purchase commitments and a reduction in trade tariffs. Beijing committed to purchasing 12 million tons of U.S. soybeans by 2025 and about 25 million tons annually over the next three years, while Washington will reduce tariffs on Chinese products from 60% to 47%. The news boosted prices on the Chicago Stock Exchange, which reversed early declines and closed the day higher, reflecting the confidence sentiment with the possibility of stability in trade relations between the world's two largest economies. China's postponement of restrictions on rare earth exports for 12 months also helped reduce tensions in international trade. According to Yedda Monteiro, an intelligence and strategy analyst at ...