Grains Rally on China Trade Hopes

Corn, soybeans, and wheat prices surged overnight, reaching near the upper range of recent highs.

The grains rallied amid expectations that a trade truce between the US and China could lead to increased purchases of American farm goods. According to Bloomberg, state-owned firms in China booked at least four cargoes of U.S. soybeans last week, with deliveries set for December and January from the Pacific Northwest and the U.S. Gulf.

The development is a sign of progress toward Beijing's pledge to buy at least 25 million tons of U.S. soybeans annually through 2028, as part of a broader trade truce struck by the two countries in October. However, significant purchases of other major crops, including wheat and corn, have yet to materialize.

USDA's Cattle on Feed Report released over the weekend showed a 1% rise from last year in the number of cattle on feed, while placements during August slumped 9% to the lowest reading for the month on record. Live and feeder cattle futures are expected to open higher after the report.