Hopes for Cooling Trade Tensions

Hogs, soybeans, and stock indexes rose sharply midweek following comments from China’s Commerce Ministry that both countries remain in communication over possible new trade talks.

Stepping back from the trade war could especially help beans and hogs as they are major exports to China, and their prices have been depressed by severe reduction in Chinese demand.

Hog futures for October delivery rallied from a low of 60 cents per pound a week ago to over 64 cents at week’s end. November beans jumped from $8.52 to over $8.75 as tensions eased and some thoughts that cold temperatures could threaten the U.S. crop which was planted late this year.