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China trade buzz boosts soybean prices to start the week

Soybean prices began the week higher on prospects of U.S. and China trade negotiations progressing.

Iowa State University Extension economist Chad Hart says President Trump’s optimistic tone about a potential deal over the weekend gave the market a spark.

“Any whisper we hear about China, the market is definitely reacting. So it’s definitely volatility-inducing.”

He says there’s concern negotiations could fall apart again, but if the Chinese resume purchases of U.S. soybeans.

“As you’re looking right now, the market’s wanting to put on 10, 15, 20 cents whenever we’re getting positive news about China. So that tells you that they see upside beyond that.”

Hart says the carry in soybean futures indicates the market is ready to move higher if a deal with China gets done.