US-China Summit Looms Over Grain Markets
Grain and livestock futures closed mostly lower on Thursday, except for soybean meal. According to Craig Turner from StoneX, corn and soybeans are consolidating as they await the outcome of the U.S.-China Summit and confirmation of yield results from harvests or the USDA.
The soybean market was steady, with November soybeans closing at $13.19 3/4, just 3/4 cent lower than the previous day. The market saw a two-sided trade, stuck between the lower bean oil market and new contract highs in meal.
Turner noted that there's optimism about the U.S.-China relationship, particularly with regard to soybean sales. He pointed out that China has been buying large quantities of soybeans, which could lead to increased demand for the crop in the coming months.
The soybean meal market is also hitting new contract highs and has reached levels not seen in 2 1/2 years, supporting soybeans on breaks. Turner noted that there's perceived value in soybean oil at these levels, as end-users begin to purchase it even with strong crush records.