Main points
- Global soybean prices have fallen due to the postponement of trade talks between the US and China, as well as lower oil prices.
- President Trump announced the postponement of his meeting with Xi Jinping due to geopolitical circumstances, which negatively affected the soybean market.
Soybeans are getting cheaper in the US / Photo Unsplash
Global soybean prices fell after news of the postponement of trade talks between the US and China. The drop in oil prices added additional pressure to the market.
US soybean prices fall after Trump postpones meeting with Xi Jinping
U.S. soybean futures fell after President Donald Trump announced the postponement of a visit to China, where he was scheduled to hold trade talks, Bloomberg reported.
Speaking at the White House, he said that his meeting with Chinese leader Xi Jinping would take place in about 5 to 6 weeks, rather than the end of March as previously planned. The postponement was due to geopolitical circumstances, including the war with Iran.
Market participants had expected new purchases of American soybeans to be part of a potential trade deal between the US and China, so the postponement of the talks negatively affected the crop's prices.
What else affected the price of soybeans?
Additional pressure on the market was caused by falling oil prices, which also pulled down contracts for soybean oil, which is used as a raw material for biofuel production.
In particular, leading soybean contracts fell by 0.6% , and soybean oil lost by 1.7% . At the same time, according to Joe Davis, director of brokerage Futures International, the fall could have been deeper if it had not been for an event dedicated to the agricultural sector announced for March 27 in the US, which partially supported the market.
Pay attention! Experts add that to restore positive sentiment in the market, additional confirmation of negotiations from China is necessary, which may return investor interest in agricultural assets.
Soybean prices in Ukraine are rising: processors have increased purchases
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Domestic processors in Ukraine have increased their purchase prices for soybeans from $477 to $479 per ton.
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Market stability is supported by active demand from oil extraction plants and stable supplies to EU markets.