Trade Truce Extended, Soybean Meal Futures Soar Amid US-China Trade Tensions

Grain futures were mostly firmer overnight, but soybean meal futures saw significant gains. The December contract for soybean meal hit a more-than-two-year high after rising by $4.20. This is due to short-bought domestic processors scrambling for needs amid wet soybean fields in the western Corn Belt and anticipated further rain.

The U.S.-China trade truce has been extended by two months, until January 10, according to Treasury Secretary Scott Bessent. The agreement reached last fall will continue, but it is unclear whether a new deal can be done or if the current terms will simply be rolled over.

New York Fed Governor John Williams said there is still much work to do on inflation in light of high energy prices and demand driven by AI investments. He stated that 'that's the job: we still have a lot of work to do' as U.S. inflation has been above target for five years.

The bond selloff deepened, with 30-year Treasury yields hitting their highest level since 2004 at 5.44%. Crude oil prices rebounded, with Brent crude rising above $105 a barrel and Nymex WTI futures reaching around $94 early today.