Soybean closes higher on Chinese demand hopes

Soybean prices rose on Monday, lifted by the aftereffects of the the announcement of the US and China reaching an initial trade deal and optimism about higher Chinese demand on US farm goods.

Analysts forecast that Brazil will increase the volume of soybean crops, which will result in record output by next year, as China will increase its purchases from the US.

The Brazilian soybean crop may reach a record of 122.7 million tons in the 2019/2020 harvest season, according to a Reuters survey of market analysts.

Since the announcement of the US and China reaching the phase-one trade deal, the market has been awaiting more details about the agreement and the signing date, with is widely expected to be in next January.

White House Chief Economic Adviser, Larry Kudlow, stated that he expects China to buy $40 billion worth of US farm goods over two years.

As for trading, soy futures (January delivery) rose by 0.5% to close at $9.34 per bushel, and hit an intraday high of $9.37 and a low of $9.27.