By Giles Coghlan, Chief Currency Analyst at HYCM
The promise/aspiration of China's $50 bln purchse of US agricultural products has boosted soy beans prices as the demand is expected to ramp up. Pre US-China trade war levels of Soybean imports in China from the US were around $10bln, with plenty of room for more purchases. Soybeans to remain bid on the extra demand.
Bad weather could impact Soybean crop
Soybeans are also expected to remain bid on the falling supply concerns as weather reports in the major growing areas suggest inclement weather ahead. Consequently. hedge funds are their most bullish in more than 16 months according to the latest CFTC data.
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