Soybean Prices Rebound Amid Crude Oil Surge and Trade Talks

Soybean futures on the Chicago Board of Trade dropped lower on Wednesday due to bearish sentiment, but managed to pull away from steeper declines thanks to a rebound in crude oil prices.

The market is waiting for talks between Chinese President Xi Jinping and US President Donald Trump on Thursday, which may have a significant impact on soybean prices. In anticipation of the talks, some risk was removed from the soybean market.

Exporters are expecting 1.5 million to two million tonnes of soybeans to be sold for the week ended September 17, with soymeal projected at 250,000 to 375,000 tonnes and soyoil seeing net reductions of 2,000 tonnes to net sales of 6,500 tonnes.

Harvesting in several key states will be slowed by heavy rain, which is forecasted for Minnesota, Iowa, the Dakotas, Nebraska, Kansas, and Missouri. Meanwhile, ANEC lowered its call on Brazil's September soybean exports by 300,000 tonnes, now at 8.02 million tonnes, which would still represent a 9.25 per cent increase from last year.