Grain Markets Wait for Next Chinese Purchase Wave

Arlan Suderman, a commodities economist with Stone X Group, says grain markets are waiting for more Chinese purchases after last week's meeting. According to him, 'I think the markets had unrealistic expectations that we were going to immediately see orders on the books.'

Suderman expects China to buy more U.S. soybeans this fall but may hold off on further purchases for a few weeks to allow prices to come down. This strategy is aimed at letting the market believe China isn't back in the game, and they can buy soybeans at a cheaper price.

The U.S. Trade Representative's Office released details of a new '30-for-30' trade framework with China on Sunday, which includes about $30 billion in goods on each side that could receive more favorable tariff treatment. The list includes corn, grain sorghum, and wheat, among other agricultural products.