Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: United States
RipeningSoybeanField oticki/ThinkstockPhotos

Soybean prices on pace for best monthly performance since 2016

The December soy rally is a welcome turnaround for American farmers.

By Michael Hirtzer

The year is ending on a high note for American soybean farmers, with prices on pace for their best monthly performance since 2016.

Futures in Chicago jumped on the news that Chinese Vice-Premier Liu He is set to lead a delegation to Washington this Saturday, likely to sign the first phase of a trade deal with the U.S. That accord includes a pledge by China to increase purchases of American farm goods, with President Donald Trump pegging the amount at as much as $50 billion. Buying anywhere close to that level would bring a significant demand boost to exports of soybeans, pork and other commodities.

The December soy rally is a welcome turnaround for embattled American farmers. This year brought bouts of wild weather that hampered both planting and harvesting, while the trade war meant reduced demand, low prices and deteriorating financial conditions. Soy futures jumped about 0.9%, on Monday, bringing this month’s gain to a little more than 8%, or the biggest advance for a most-active contract since April 2016.

“We have a quiet feeling of optimism about a trade deal,” Rich Nelson, chief strategist at Allendale Inc. in McHenry, Illinois, said by phone. “We’re slowly prodding along here, and the story is not unwrapping.”

The rally in soy comes as many other raw materials have also gained amid weather-related growing challenges for crops and a weaker U.S. dollar. The Bloomberg Commodity Spot Index has hit the highest since November 2018.

Prices

Soybean futures for March delivery rise 0.9% to $9.50 a bushel on Chicago Board of Trade

March corn down 0.6% to $3.87 1/2 a bushel

March wheat drops 0.6% to $5.53 a bushel

To contact the reporter on this story:
Michael Hirtzer in Chicago at mhirtzer@bloomberg.net
To contact the editors responsible for this story:
Millie Munshi at mmunshi@bloomberg.net
Joe Carroll
© 2019 Bloomberg L.P.
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish