Corn and soybean prices climbed as commodity markets responded positively to comments from US president, Donald Trump, who hinted at a potential trade deal with China, notes CRM Agri.
Trump, whose first term was marked by trade tensions between the world’s two largest economies, stated on Thursday that ‘a new trade deal with China is possible.’
He also suggested that Chinese President Xi Jinping might visit the US soon.
The prospect of reduced trade barriers and stronger economic ties fueled gains across commodity markets, report the UK grain and oilseed market specialists.
The Bloomberg Commodity Index (Bcom) surged nearly 9% year-to-date, reaching its highest level since April 2023, they added.
Soybeans, a major Chinese import commodity, saw staunch support, with March 2025 futures rising 1% in midday in Chicago trading yesterday. Corn futures also gained, with the US as the top exporter and China as a key buyer, said the CRM Agri team.
Paris May 2025 rapeseed futures rebounded 0.7%, buoyed by gains in palm oil and crude oil, along with soybean market strength, they added.
Wheat markets saw a slight pullback as traders locked in profits. Concerns over extreme cold in Russian and US winter wheat regions appeared to be fully priced in, reads the report from the UK analysts.
Global corn output trimmed
Meanwhile, the International Grains Council (IGC) trimmed its 2024-25 global corn production forecast by 3 million metric tons (Mt), citing lower estimates for Argentina and Brazil. However, the revised projection of 1,216Mt remains slightly above the USDA’s estimate.
The IGC also raised its global corn stock forecast for the end of 2024-25 by 3.4Mt, reflecting reduced Chinese consumption.
Additionally, the IGC also predicts the global soybean output for 2024-25 to expand by 5% year-on-year to a peak of 418m tons, up from 396m tons in 2023-24.
Credit: feednavigator.com
