April 22, 2025

Soybean prices at two-month high on April 21

 

 

Soybeans climbed to a two-month high on April 21, with prices supported by expectations of trade talks between the United States and China, although gains were limited as market participants remained cautious.

 

Corn prices inched higher, while wheat prices were largely steady with the market trading close to the previous session's highest point since mid-March on worries over dryness curbing US yields.

 

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at US$10.51-1/2 a bushel, as of 0032 GMT. Earlier in the session, the contract rose to US$10.55 a bushel, its highest level since February 24.

 

Corn gained 0.5% to US$4.84-3/4 a bushel and wheat was flat at US$5.62-1/4 a bushel, after rallying in the previous two sessions.

 

Dealers await news about possible trade talks between China and the US, which could restart US soybean exports to China.

 

Xie Feng, China's ambassador to the US, has urged Washington to seek common ground with Beijing and pursue peaceful coexistence, while warning that China stood ready to retaliate in the escalating trade war.

 

While Japan, Taiwan, and others are already in talks or preparing to negotiate with Washington over US President Donald Trump's "Liberation Day" tariffs, there is currently no high-level dialogue planned with China.

 

In the wheat market, US dryness triggered worries over crop losses. The US Department of Agriculture reported last week winter that wheat conditions at 47% good-to-excellent, with 34% of the US wheat crop affected by drought as of April 15.

 

While swathes of the US Plains are likely to remain too dry, heavy rain over the US corn belt has delayed seeding and boosted prices.

 

Large speculators trimmed their net short position in CBOT corn futures in the week to April 15, regulatory data released on April 18 showed.

 

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and switched to a net long position in soybeans.

 

- Reuters