GRAINS-Soybeans rise after Trump says he wants China to buy more US beans
CANBERRA, Aug 11 (Reuters) - Chicago soybean prices rose more than 2.5% on Monday after U.S. President Donald Trump said that he hoped China would quadruple its soybean orders from the United States.
China is the world's largest soy importer but has been reducing its purchases of U.S. beans amid trade and diplomatic tensions, fuelling concerns about U.S. export demand as its harvest approaches.
Trade talks between the U.S. and Chinese officials are ongoing.
"China is worried about its shortage of soybeans," Trump posted on Truth Social. "I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China's Trade Deficit with the USA."
The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1, flat before Trump's post, was 2.6% higher at $10.13-1/4 a bushel, as of 0550 GMT, heading for its biggest daily gain in two months.
"The market is worried about where the U.S. is gong to sell all the soybeans it has," said Tobin Gorey, founder of agricultural consultancy Cornucopia.
Analysts polled by Reuters think the USDA will raise its U.S. corn and soybean production estimates in a monthly report due on August 12.
"Where do all those soybeans go if they're not going to China? Any positive news on the China front is very likely to prompt prices to rise."
Soybeans dragged Chicago wheat and corn futures upward in their wake. CBOT wheat Wv1 was up 1.1% at $5.20 a bushel and corn Cv1 was 0.7% higher at $4.08-1/4 a bushel.
However, prices of all three crops remain under pressure from plentiful global supply. Last week, wheat fell to a five-year low, soybeans to a four-month low and corn to contract lows.
Speculators are still bearish on prices. Non-commercial traders trimmed their net short position in CBOT corn futures in the week to August 5 but expanded their net shorts in wheat and soybeans, regulatory data showed.
Large short positions make the markets vulnerable to bouts of short covering that accelerate upward price moves.
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