Soybean prices got a lift this week on renewed hopes for a trade deal with China and tighter supply outlooks from the U.S. Department of Agriculture.
The monthly USDA report released Thursday morning projected that this year’s soybean crop will be slightly smaller, and demand will be higher, creating a much tighter supply situation, both domestically and globally.
Meanwhile, China has begun showing interest buying U.S. soybeans ahead of the trade talks, giving hope that the world’s largest soybean buyer could return to buying one third of U.S. soybeans, which would give prices a significant boost after the last year’s malaise.
By midday Friday, November soybeans were trading for $9.00 per bushel, up 42 cents during the week.