Chicago Grain Prices Soar on Hopes of China Trade Deal

Grain prices in Chicago are rising on hopes that China will purchase more US supplies. The upcoming meeting between US President Donald Trump and Chinese President Xi Jinping is fueling speculation about a potential trade agreement or tariff reductions.

Matt Ammermann, commodity risk manager for StoneX, said soybeans and corn are supported by hopes of increased Chinese purchases if the talks lead to an agreement. He noted that private Chinese buyers may resume purchasing US soybeans once China lifts its 10% tariff on imports.

The price of wheat has also risen due to disruptions in Russian and Ukrainian exports. Ammermann said neither Russia nor Ukraine appears to be seeking diplomacy or de-escalation, which would allow their Black Sea ports for grain exports to reopen.