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Soybean market awaits U.S.-China trade framework details, analyst says

A market analyst says the details matter in a new trade framework between the U.S. and China.

DuWayne Bosse with Bolt Marketing says…

“I think the futures market has rallied on a story and I think now we need facts to push us above $11. We need how many beans and when.”

Bosse says if China only buys 10 million metric tons of U.S. soybeans this year, it would be reduction from what they have bought previously.

“Brazil had a huge crop so they bought from Brazil. When you do the math backwards, China needs about 350 million bushels to get to the next Brazil crop. So, I don’t feel like the deal is that like, oh my gosh, look what we did for the U.S. farmer. If that’s the amount of bushels China buys, I think it’s just kind of normal supply and demand.”

He says once soybean prices get above $11, the U.S. won’t be cheaper than Brazilian soybeans in the global marketplace.

Bosse says he will be interested to see how the grain markets respond to the meeting in South Korea.