Soybeans scale four-week highs as eyes on US-China trade talks

Soybean futures tilted higher in American trade to December 12 highs as the dollar index fell off June 2017 highs for the eleventh session out of 17. 

That follows earlier data from the US, the world's largest soybean producer and exporter, while investors look for the results of the ongoing US-China trade talks in Beijing. 

As of 08:58 GMT, soybean futures due in March rose 0.30% to $9.2425, marking four-week highs, while the dollar index tumbled 0.50% to 97.50, plumbing October 22 lows. 

Earlier US data showed the ISM services PMI receded to 57.6 in December from 60.7 in November, missing estimates of 59.6. 

Otherwise, US trade secretary Wilbur Ross noted how the US and China could reach a good settlement when it comes to direct trade, but the structure of trade issues and their execution may prove a more difficult process, noting how China is awakening to its economic dependence on US trade. 

Chinese President Xi Jinping noted in recent remarks how his country made over a 100 reformative measures in 2018, with the world witnessing an economic opening for foreign investment.  

Jinping avoided the subject of the ongoing US-China trade dispute, especially after an agreement with President Donald Trump to put off planned US hikes on Chinese products until negotiations settle. 

It was a truce reached at the G20 Summit in Argentine last month in hopes of putting down the fire of a trade war between the two largest economies in the world. 

Some Chinese reports indicated the People's Central Bank might cut growth forecasts for the last quarter of 2018 to below 6.5%, with Chinese companies facing many challenges such as slower growth and US tariffs. 

US President Donald Trump also noted last month that China will be buying "huge amounts" of US soybeans following his meeting with Chinese President Xi Jinping in Argentine, adding China has returned to market in regard to US grain products. 

Recent reports indicated China plans to buy the first patch of US soybean since the trade war in June to fulfill its part of the deal with President Trump and as negotiations go through for the first three months in 2019.