US soybeans set 15-month high on US-China trade deal hopes

By Julie Ingwersen

CHICAGO, Oct 28 (Reuters) - Chicago soybean futures reached their highest in 15 months on Tuesday, briefly topping $11 a bushel on optimism that the U.S. could reach a trade deal with China as leaders from both countries are expected to meet in South Korea on Thursday.

Corn and wheat followed soybeans higher although all three markets ended below their session highs, pressured by profit-taking and pockets of farmers selling as growers locked in prices.

Chicago Board of Trade January soybean futures SF26 settled up 10-1/4 cents at $10.95-1/4 per bushel after reaching $11.08, the highest on a continuous chart of the most-active contract Sv1 since July 2024.

CBOT December corn CZ25 ended up 3-1/4 cents at $4.32 a bushel and December wheat WZ25 finished up 3 cents at $5.29 a bushel.

Soybean export prospects remained the focus of the grain markets. Trump said on Monday the U.S. and China, by far the world's biggest soybean buyer, were set to "come away with" a trade deal, while Treasury Secretary Scott Bessent told NBC on Sunday that China would make "substantial" soybean purchases under a proposed framework.

"It's all about the optimism on Thursday's meeting in the hopes that, quote, 'substantial' bean purchases may be announced," said Randy Place, analyst at the Hightower Report, adding that the soybean rally was attracting technical buying.

Given the expectations, Place said, futures could retreat without some sort of purchase commitment. "There's a risk we could set back here," he said.

Abundant global grain supplies continued to hang over corn and wheat prices, capping rallies.

Analysts estimated the U.S. corn harvest was 72% finished as of Sunday and the soybean harvest was 84% complete, according to a Reuters poll. Winter wheat planting was seen 84% complete.

Across most of the European Union, winter crop sowing is progressing well, although delays are reported in parts of southeastern Europe due to adverse weather, crop monitoring service MARS said on Monday.